Asymmetric Information and Bank Regulation Government Safety Net: Deposit Insurance and the FDIC Global Box: The Spread of Government Insurance Throughout the World: Is This a Good Thing Restrictions on Asset Holdings and Ban
Econ 340, Fall 2011
Problem Set 2
Chapter 3: Questions 1-2, Quantitative Problems 1-3, 11, 13, 14.
1. $2000 = $100/(1 + i) + $100/(1 + i)2 + . . . + $100/(1 + i)20 + $1000/(1 + i)20.
2. If there is a decline in interest rates, you would rather be holding
Academic Support Center
Proper Citation of Sources-MLA Format
When writing papers, which use information from researched sources, it is
necessary to provide complete and correct documentation to show the source of all words
and ideas which
Sample MLA Format Reference Page
Prepared for you by the staff of the Park University Academic Support Center
Bernstein, Tom M. The Careful Writer: A Modern Guide to English Usage.
New York: Atheneum, 1965.
How to Cite Electronic Sources (MLA 6th Edition)
Generally, this is the information you must cite, the order in the citation, and punctuation:
Last name, First name of author. Title of Web Page. Date of posting or last update.
Name of organization, compan
The Parkite's Guide To Surviving . . .
THE WRITING COMPETENCY TEST
*THIS GUIDE IS FOR THE STUDENT TO KEEP. PLEASE DO NOT BRING IT WITH YOU TO THE TEST*
The importance of compliance with the WCT requirement at an early date in the students program is to be
Welcome to our Virtual Lecture Hall
In this lecture we will extend the analysis of macroeconomic policy using the IS-LM
model to consider policy effects in an open economy, one that experiences flows of
goods, services and capital to and from ot
For use at 12:00 p.m., eastern time
March 8, 2012
FEDERAL RESERVE statistical release
Flow of Funds Accounts
of the United States
Flows and Outstandings
Fourth Quarter 2011
Board of Governors of the Federal Reserve System, Washington DC 20551
Deskins, Money & the Financial System
Recommended Problems Solutions 1
Mishkin, Chapter 4
1. The dollar would be worth less with a higher discount rate. The higher the discount
rate, the less valuable a future payment.
2. No, not really. You have won $10
Answers to End-of-Chapter Questions Chapter 12
1. Securities in the mortgage markets are collateralized by real estate.
2. Balloon loans require that a large final payment be made to pay off the remaining principal balance.
Amortizing loans are structured
Answers to End-of-Chapter Questions Chapter 11
The value of any asset is the present value of its future cash flows. The value of a bond is the PV of
the interests payments plus the PV of the final payment. Stocks are valued the same way. The price is
Answers to End-of-Chapter Questions Chapter 10
1. Investors use capital markets for long-term investment purposes. They use money markets, which
have lower yields, primarily for temporary or transaction purposes.
3. The primary market is for securities be
Answers to End-of-Chapter Questions- Chapter 7
1. Because of traditional American hostility to a central bank and centralized authority, the system of
12 regional banks was set up to diffuse power along regional lines.
4. The Federal Reserve Banks influen
evolution of the international monetary system
The international monetary system is the legal and institutional frameworkthe laws,
rules, customs, instruments, and organizationswithin which the foreign exchange
market operates. Over
The Foreign Exchange Market
Answers to End-of-Chapter Questions
1. You are more likely to drink California wine because the franc appreciation makes French wine
relatively more expensive than California wine.
2. False. Although a weak curren
Answers to End-of-Chapter Questions Chapter 8
1. Disagree. Some unemployment is beneficial to the economy because the availability of vacant jobs
makes it more likely that a worker will find the right job and that the employer will find the right
Part 4 Financial Markets
The Money Markets
The Money Markets Defined Why Do We Need Money Markets? Cost Advantages The Purpose of the Money Markets Who Participates in the Money Markets? U.S. Treasury Department Federal Reserve System Commercial
The Bond Market
Purpose of the Capital Market Capital Market Participants Capital Market Trading Organized Securities Exchanges Over-the-Counter Markets Types of Bonds Treasury Bonds Treasury Bond Interest Rates Treasury Strips Agency Bonds Mun
How Do Risk and Term Structure Affect Interest Rates?
Risk Structure of Interest Rates Default Risk Case: The Stock Market Crash of 1987 and the Junk Bond-Treasury Spread Case: What If Treasury Securities Were No Longer Default Free? Liquidity I