Economics of Money, Banking and Financial Markets 12th Edition

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 14 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 1 Why Study Money, Banking, and Financial

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 51 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 1 ANSWERS TO QUESTIONS 1. What

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 127 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 10 ANSWERS TO QUESTIONS 1. Why

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 136 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 11 ANSWERS TO QUESTIONS 1. Do

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 143 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 12 ANSWERS TO QUESTIONS 1. How

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 152 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 13 ANSWERS TO QUESTIONS 1. Why

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 158 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 14 ANSWERS TO QUESTIONS Unless otherwise

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 169 Copyright 2019 by Pearson Education, Inc. All rights reserved. 6. The federal funds rate can never be above the discount rate. Is this statement true, false, or uncertain? Explain your answer. Uncertain. In theory, the

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 179 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 16 ANSWERS TO QUESTIONS 1. What

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 193 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 17 ANSWERS TO QUESTIONS 1. Suppose

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 201 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 18 ANSWERS TO QUESTIONS 1. If

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 210 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 19 ANSWERS TO QUESTIONS 1. How

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 15 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 2 An Overview of the Financial System

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 58 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 2 ANSWERS TO QUESTIONS 1. If

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 219 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 20 ANSWERS TO QUESTIONS 1. When

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 230 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 21 ANSWERS TO QUESTIONS 1. When

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 233 Copyright 2019 by Pearson Education, Inc. All rights reserved. 14. What would be the effect of an increase in U.S. net exports on the aggregate demand curve? Would an increase in net exports affect the

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 251 Copyright 2019 by Pearson Education, Inc. All rights reserved. 25. During 2017, some Fed officials discussed the possibility of increasing interest rates as a way of fighting potential increases in expected inflation. If the public

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 268 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 24 ANSWERS TO QUESTIONS

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 280 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 25 ANSWERS TO QUESTIONS 1. From

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 16 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 3 What Is Money? Before becoming

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 65 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 3 ANSWERS TO QUESTIONS 1. Why

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 17 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 4 Understanding Interest Rates In my

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 73 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 4 ANSWERS TO QUESTIONS 1. Would

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 80 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 5 ANSWERS TO QUESTIONS 1. Explain

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 92 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 6 ANSWERS TO QUESTIONS 1. If

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 102 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 7 ANSWERS TO QUESTIONS 1. What

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 109 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 8 ANSWERS TO QUESTIONS 1. For

Mishkin Instructors Manual for The Economics of Money, Banking, and Financial Markets, Twelfth Edition 119 Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Copyright 2019 by Pearson Education, Inc. All rights reserved. Chapter 9 ANSWERS TO QUESTIONS 1. Why

1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. Economics of Money, Banking, and Financial Markets, 12e (Mishkin) Chapter 1 Why Study Money, Banking, and Financial Markets? 1.1 Why Study Financial Markets? 1.1 Why Study Financial Markets? 1.1

13 Copyright 2019 Pearson Education, Inc. 13 Copyright 2019 Pearson Education, Inc. 13 Copyright 2019 Pearson Education, Inc. 15) Evidence from the United States and other foreign countries indicates that A) there is a strong positive association between inflation and growth rate of money over long periods of time. B)

38 Copyright 2019 Pearson Education, Inc. 38 Copyright 2019 Pearson Education, Inc. 38 Copyright 2019 Pearson Education, Inc. 37) Everything else held constant, if the sum of the required reserve ratio and the excess reserve ratio is less than one, an increase in the currency-checkable deposit ratio will mean A)

17 Copyright 2019 Pearson Education, Inc. 17 Copyright 2019 Pearson Education, Inc. 17 Copyright 2019 Pearson Education, Inc. 17) If float is predicted to increase because of bad weather, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________

19 Copyright 2019 Pearson Education, Inc. 19 Copyright 2019 Pearson Education, Inc. 19 Copyright 2019 Pearson Education, Inc. 8) ________ in the domestic interest rate causes the demand for domestic assets to shift to the left and the domestic currency to ________, everything else held constant. A) An increase; appreciate

15 Copyright 2019 Pearson Education, Inc. 15 Copyright 2019 Pearson Education, Inc. 15 Copyright 2019 Pearson Education, Inc. 14) Keynes argued that when interest rates were low relative to some normal value, people would expect bond prices to ________ so the quantity of money demanded would ________. A) increase; increase

1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. Economics of Money, Banking, and Financial Markets, 12e (Mishkin) Chapter 2 An Overview of the Financial System 2.1 Function of Financial Markets 2.1 Function of Financial Markets 2.1 Function

17 Copyright 2019 Pearson Education, Inc. 17 Copyright 2019 Pearson Education, Inc. 17 Copyright 2019 Pearson Education, Inc. 5) If Microsoft sells a bond in London and it is denominated in dollars, the bond is a A) Eurobond. B) foreign bond. C) British bond. D) currency bond. Answer: A Ques

1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. Economics of Money, Banking, and Financial Markets, 12e (Mishkin) Chapter 26 Web Chapter 1: Financial Crises in Emerging Market Economies 26.1 Dynamics of Financial Crises in Emerging Market Economies 26.1

1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. Economics of Money, Banking, and Financial Markets, 12e (Mishkin) Chapter 3 What Is Money? 3.1 Meaning of Money 3.1 Meaning of Money 3.1 Meaning of Money 1) To

12 Copyright 2019 Pearson Education, Inc. 12 Copyright 2019 Pearson Education, Inc. 12 Copyright 2019 Pearson Education, Inc. 3.3 Evolution of the Payments System 1) The payments system is A) the method of conducting transactions in the economy. B) used by union officials to set salary caps.

1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. Economics of Money, Banking, and Financial Markets, 12e (Mishkin) Chapter 4 The Meaning of Interest Rates 4.1 Measuring Interest Rates 4.1 Measuring Interest Rates 4.1 Measuring Interest Rates

13 Copyright 2019 Pearson Education, Inc. 13 Copyright 2019 Pearson Education, Inc. 13 Copyright 2019 Pearson Education, Inc. 57) The yield to maturity for a discount bond is ________ related to the current bond price. A) negatively B) positively C) not D) directly Answer: A Ques Status: Previous Edition AACSB:

1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. Economics of Money, Banking, and Financial Markets, 12e (Mishkin) Chapter 5 The Behavior of Interest Rates 5.1 Determinants of Asset Demand 5.1 Determinants of Asset Demand 5.1 Determinants of

21 Copyright 2019 Pearson Education, Inc. 21 Copyright 2019 Pearson Education, Inc. 21 Copyright 2019 Pearson Education, Inc. 37) Everything else held constant, when prices in the art market become more uncertain A) the demand curve for bonds shifts to the left and the interest rate rises. B) the demand

33 Copyright 2019 Pearson Education, Inc. 33 Copyright 2019 Pearson Education, Inc. 33 Copyright 2019 Pearson Education, Inc. 16) In the figure above, the decrease in the interest rate from i1 to i2 can be explained by A) a decrease in money growth. B) a decline in the expected price

1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. 1 Copyright 2019 Pearson Education, Inc. Economics of Money, Banking, and Financial Markets, 12e (Mishkin) Chapter 6 The Risk and Term Structure of Interest Rates 6.1 Risk Structure of Interest Rates 6.1 Risk Structure of Interest

16 Copyright 2019 Pearson Education, Inc. 16 Copyright 2019 Pearson Education, Inc. 16 Copyright 2019 Pearson Education, Inc. 6.2 Term Structure of Interest Rates 1) The term structure of interest rates is A) the relationship among interest rates of different bonds with the same maturity. B) the

13 Copyright 2019 Pearson Education, Inc. 13 Copyright 2019 Pearson Education, Inc. 13 Copyright 2019 Pearson Education, Inc. 13) External financing by ________ should be more important in developing countries than in industrialized countries because information about private firms is more difficult to collect in developing countries. A) financial intermediaries