Test Bank for The Economics of Money, Banking and Financial Markets 7th Canadian by Mishkin

Product details:
ISBN: 9780134821221, 013482122X

Author: Mishkin

This market-leading text provides the most authoritative, applications-rich coverage of key concepts, models, and issues in money and banking. Frederic Mishkin previously held the post as Executive Vice President and Director of Research at the Federal Reserve Bank of New York. His writing style, latest research, and discussion of policy issues keep his text as the forefront of money and banking. The 7th edition update comprehensively brings the data in the text, figures, tables and boxes up to date through early 2005.

Table contents:

Introduction 1
Chapter 1
Why Study Money, Banking, and Financial Markets?	3
Preview	3
Why Study Financial Markets?	3
The Bond Market and Interest Rates	3
The Stock Market	5
The Foreign Exchange Market	5
Why Study Banking and Financial Institutions?	7
Structure of the Financial System	7
Banks and Other Financial Institutions	8
Financial Innovation	8
Why Study Money and Monetary Policy?	8
Money and Business Cycles	8
Money and Inflation	10
Money and Interest Rates	11
Conduct of Monetary Policy	12
Fiscal Policy and Monetary Policy	12
How We Will Study Money, Banking, and Financial Markets	13
Exploring the Web	14
Collecting and Graphing Data 	15
Web Exercises 	15
Concluding Remarks	16
Summary 	17 
Key Terms, Questions and Problems 	18
Web Exercises and Web References	19
Appendix to Chapter 1
Defining Aggregate Output, Income, the Price Level, 
and the Inflation Rate	20
Aggregate Output and Income	20
Real Versus Nominal Magnitudes	20
Aggregate Price Level	21
Growth Rates and the Inflation Rate	22
Chapter 2
An Overview of the Financial System	23
Preview	23
Function of Financial Markets	23
Structure of Financial Markets	25
Debt and Equity Markets	25
Primary and Secondary Markets	26
Exchanges and Over-the-Counter Markets	27
Money and Capital Markets	27
Financial Markets Instruments	28
Money Maker Instruments	28
Following the Financial News Money Market Rates	30
Capital Market Instruments	31
Internationalization of Financial Markets	33
International Bond Market, Eurobonds, and Eurocurrencies	33
World Stock Markets	33
Following the Financial News Foreign Stock Market Indexes	34
Function of Financial Intermediaries	35
Transaction Costs	35
Box 1 Global: The Importance of Financial Intermediaries to Securities 
Markets: An International Comparison	36
Risk Sharing	36
Asymmetric Information: Adverse Selection and Moral Hazard	37
Types of Financial Intermediaries	39
Depository Institutions	39
Contractual Savings Institutions	40
Investment Intermediaries	42
Regulation of the Financial System	42
Increasing Information Available to Investors	44
Ensuring the Soundness of Financial Intermediaries	44
Financial Regulation Abroad	45
Summary	46
Key Terms, Questions and Problems	47
Web Exercises and Web References	48
Chapter 3
What Is Money?	49
Preview	49
Meaning of Money	49
Functions of Money	50
Medium of Exchange	50
Unit of Account	51
Store of Value	52
Evolution of the Payments System	53
Commodity Money	53
Fiat Money	53
Checks	53
Electronic Payment	54
E-Money	54
Box 1 E-Finance: Why Are Scandinavians So Far Ahead of Americans in 
Using Electronic Payments?	55
Box 2 E-Finance: Are We Headed for a Cashless Society?	56
Measuring Money	56
The Federal Reserve's Monetary Aggregates	56
Following the Financial News The Monetary Aggregates	58
Box 3 Where Are All the U. S. Dollars?	59
How Reliable Are the Money Data?	59
Summary	61
Key Terms, Questions and Problems	62
Web Exercises and Web References	63
part II
Financial Markets 65
Chapter 4
Understanding Interest Rates	67
Preview	67
Measuring Interest Rates	67
Present Value	67
Application Simple Present Value	69
Application How Much Is That Jackpot Worth?	69
Four Types of Credit Market Instruments	70
Yield to Maturity	71
Application Yield to Maturity on a Simple Loan	71
Application Reading the Wall Street Journal: The Bond Page	72
Application Yeild to Maturity and the Yearly Payment on a Fixed-Payment Loan	73
Application Yeild to Maturity and the Bond Price for a Coupon Bond	74
Application Perpetuity	76
Box 1 Global: Negative T-Bill Rates? Japan Shows the Way	78
Yield on a Discount Basis	78
Application Reading the Wall Street Journal: The Bond Page	80
Following the Financial News Bond Prices and Interest Rates	81
The Distinction Between Interest Rates and Returns	82
Box 2 Helping Investors to Select Desired Interest-Rate Risk	85
Maturity and the Volatility of Bond Returns: Interest-Rate Risk	85
The Distinction Between Real and Nominal Interest Rates	87
Application Calculating Real Interest Rates	88
Box 3 With TIPS, Real Interest Rates Have Become Observable in the 
United States	90
Summary	90
Key Terms, Questions and Problems	91
Web Exercise sand Web References	92
Chapter 5
The Behavior of Interest Rates	93
Preview	93
Determinants of Asset Demand	93
Wealth	94
Expected Returns	94
Risk	95
Liquidity	95
Theory of Asset Demand	95
Supply and Demand in the Bond Market	95
Demand Curve	96
Supply Curve	98
Market Equilibrium	98
Supply and Demand Analysis	99
Changes in Equilibrium Interest Rates	99
Shifts in the Demand for Bonds	100
Shifts in the Supply of Bonds	103
Application Changes in the Interest Rate Due to Expected Inflation: The Fisher

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