Review Guide for Final Exam: Econ 353 (Tesfatsion)

Econ 353: Money, Banking, and Financial Markets

Spring 2011 Review Guide for
the Comprehensive Final Exam:

Topic Coverage and Required Materials

Last Updated: 25 April 2011
Latest Course Offering: Spring Semester 2011
Course Instructor:: Professor Leigh Tesfatsion; tesfatsi AT iastate.edu
Office Hours: 375 Heady, T 2:10-3:40pm and by appointment.
Spring 2011 Final Exam Schedule:: Monday, May 2, 12-2:00pm, Ross 0124 (regular classroom meeting place)
Spring 2011 Final Exam Topic Coverage:: The comprehensive Spring 2011 Final Exam for Econ 353 will cover all required readings, take-home exercises (1-12), and in-class discussions relating to Mishkin Chapters 1-5, 7-12, and 20-21. For the exercises, be sure to review both the multiple choice questions based on the required Mishkin textbook chapter readings and the required readings for the special "Q6-Q8" questions typically focusing on empirical case studies.; The basic required readings and the take-home exercises (with additional required readings for Q6-Q8) can be found at the on-line Econ 353 syllabus, marked with a double asterisk (**).; In particular, the comprehensive Spring 2011 Final Exam will cover all required materials covered on the First and Second Midterm Exams and all new required materials covered since the Second Midterm Exam through the last day of class. Although the final exam coverage will be comprehensive, the new required materials covered since the Second Midterm Exam will be stressed.; See below for more details about this topic coverage.
Spring 2011 Final Exam: General Exam Policy: For general final exam policies, please refer to the Econ 353 Exam Policy Information Site.

1. Required Materials Covered on the First Midterm Exam

The required (**) materials for the First Midterm Exam included: (a) all in-class discussions and all required readings, html notes, and ppt slides relating to Mishkin Chapters 1-3; (b) Empirical Data Packets #1 and #2; and (c) take-home exercises 1 through 4 (including the required readings listed for the Q6-Q8 questions within each exercise).

For details, see the Spring 2011 First Midterm Exam Review Guide

2. Required Materials Covered on the Second Midterm Exam

The required (**) materials for the comprehensive Second Midterm Exam included: (a) all required materials for the First Midterm Exam (see above); (b) all in-class discussions and all required readings, html notes, and ppt slides relating to Mishkin Chapters 4, 5, and 7; and (c) take-home exercises 5-7 (including the required readings listed for the Q6-Q8 questions within each exercise).

For details, see the Spring 2011 Second Midterm Exam Review Guide

3. Required Materials to be Covered on the Final Exam

The required (**) materials to be covered on the Final Exam include: (a) all required materials from the First and Second Midterm Exams (see above); (b) all in-class discussions and all required readings, html notes, and ppt slides relating to Mishkin Chapters 20, 21, and 8-12; and (c) take-home exercises 8-12 (including the required readings listed for the Q6-Q8 questions within each exercise).

The html notes and ppt slides posted at the online Econ 353 syllabus for each Mishkin chapter indicate which particular topics from this chapter will be stressed on the Final Exam. See, in particular, the listings of Basic Concepts and Key Issues given at the end of each set of html notes for each Mishkin chapter.

Apart from the required readings for the Q6-Q8 exercise questions (listed within each exercise), the required materials for the Final Exam can be found -- marked with a double asterisk (**) -- at the on-line Econ 353 syllabus.

For your convenience, the latter required (**) syllabus materials are reproduced below.

Section 1. Financial Economics: Fundamental Concepts

Mishkin Chapter 1: Basic Definitions and Empirical Data Overview

** Key in-class discussion questions for Mishkin Chapter 1
** Mishkin Chapter 1 ("Why Study Money, Banking, and Financial Markets?")
** F. Mishkin, Overview of Chapter 1: Basic Financial Concepts and Definitions (ppt,1.2M)
** L. Tesfatsion, Notes on Mishkin Chapter 1: Some Additional Empirical Context (html)
** Empirical Data for the U.S. Economy: Packet 1 (Basic Concepts and Key Time Series) HAND-OUT
** ANSWER KEY (answers at end) for Take-Home Exercise 1 on Mishkin Chapter 1 (Due: Tuesday, Jan 18, 12:40pm).

Mishkin Chapter 2: Overview of the Financial System

** Key in-class discussion questions for Mishkin Chapter 2: Part A
** Mishkin Chapter 2 ("An Overview of the Financial System"
** L. Tesfatsion, Notes on Mishkin Chapter 2: Part A (html notes,31K), (ppt,193K)
** Empirical Data for the U.S. Economy: Packet 2 (Financial Crises), HAND-OUT. See also the on-line version here (pdf,2.1M) that contains most (but not all) of this hand-out.
** ANSWER KEY (answers at end) for Take-Home Exercise 2 on Mishkin Chapter 2:Part A (Due: Tuesday, Jan 25, 12:40pm).
** Key in-class discussion questions for Mishkin Chapter 2: Part B
** L. Tesfatsion, Notes on Mishkin Chapter 2: Part B (html notes,37K), (ppt,421K)
** ANSWER KEY (answers at end) for Take-Home Exercise 3 on Mishkin Chapter 2:Part B (Due: Tuesday, February 1, 12:40pm).

Mishkin Chapter 3: What is Money?

** Key in-class discussion questions for Mishkin Chapter 3
** Mishkin Chapter 3 ("What is Money?")
** L. Tesfatsion, Notes on Mishkin Chapter 3 (html), (ppt,298K)
** ANSWER KEY (answers at end) for Take-Home Exercise 4 on Mishkin Chapter 3 (Due: Tuesday, February 8, 12:40pm).

Section 2. Financial Markets (Domestic and International)

Mishkin Chapter 4: Understanding Interest Rates

** Key in-class discussion questions for Mishkin Chapter 4: Part A (pp. 68-80)
** Mishkin Chapter 4:Part A ("Understanding Interest Rates", pp. 68-80)
** L. Tesfatsion, Notes on Mishkin Chapter 4: Part A (pp. 68-80) (html), (ppt,94K)
** ANSWER KEY (answers at end) for Take-Home Exercise 5 on Mishkin Chapter 4:Part A (Due: Tuesday, February 22, 12:40pm).
Practice Exercise Sets for Mishkin Chapter 4: Part A (pp. 67-80)
** Key in-class discussion questions for Mishkin Chapter 4: Part B (pp. 80-89)
** Mishkin Chapter 4:Part B ("Understanding Interest Rates", pp. 80-89)
** L. Tesfatsion, Notes on Mishkin Chapter 4: Part B (pp. 80-89) (html), (ppt,362K)
Practice Exercise Sets for Mishkin Chapter 4: Part B (pp. 80-89)
Websites Related to Mishkin Chapter 4

Mishkin Chapter 5: Behavior of Interest Rates

** Key in-class discussion questions for Mishkin Chapter 5 (pp. 91-108 only)
** Mishkin Chapter 5 ("The Behavior of Interest Rates", pp. 91-108 only )
** L. Tesfatsion, Notes on Mishkin Chapter 5: (pp. 91-108 only) (ppt,587K) (html,4K)
** ANSWER KEY (answers at end) for Take-Home Exercise 6 on Mishkin Chapter 4:Part B and Mishkin Chapter 5 (Due: Tuesday, March 1, 12:40pm).

Mishkin Chapter 7: Stock Market Pricing

** Key in-class discussion questions for Mishkin Chapter 7: Part A (pp. 147-152), Part B (pp. 152-165).
** Mishkin Chapter 7: The Stock Market (147-165))
** L. Tesfatsion, Notes on Mishkin Chapter 7: Part A (pp. 147-152) (ppt,164K)
** L. Tesfatsion, Notes on Mishkin Chapter 7: Part B (pp. 152-165) (ppt,97K)
** How to Read Stock Market Tables
** ANSWER KEY (answers at end) for Take-Home Exercise 7 on Mishkin Chapter 7 (Due: Tuesday, March 8, 12:40pm).

Mishkin Chapter 20: The Foreign Exchange Market

** Key in-class discussion questions for Mishkin Chapter 20
(3/30/2011) ** L. Tesfatsion, Notes on Mishkin Chapter 20 (html), (ppt,394K)
** Answer Key (answers at end) for Take-Home Exercise 8 on Mishkin Chapter 20 (Due: Tuesday, March 29, 12:40pm).
* Mishkin Chapter 20 ("The Foreign Exchange Market") (Note: This textbook chapter is only recommended, not required, because it relies on materials from the textbook chapters 16-19 that we will not be covering in this course. Instead, rely on the required ** html/ppt notes for Mishkin 20 -- see above -- that present selected topics from this chapter.)

Mishkin Chapter 21: The International Financial System

** Key in-class discussion questions for Mishkin Chapter 21
(3/21/2011) ** L. Tesfatsion, Notes on Mishkin Chapter 21 (html), (ppt,88K).
** ANSWER KEY (answers at end) for Take-Home Exercise 9 on Mishkin Chapter 21 (Due: Tuesday, April 5, 12:40pm).
* Mishkin Chapter 21 ("The International Financial System") (Note: This textbook chapter is only recommended, not required, because it relies on materials from the textbook chapters 16-19 that we will not be covering in this course. Instead, rely on the required ** html/ppt notes for Mishkin 21 -- see above -- that present selected topics from this chapter.)

Section 3. Financial Institutions

Mishkin Chapter 8: An Economic Analysis of Financial Structure

** Key in-class discussion questions for Mishkin Chapter 8
** Mishkin Chapter 8 ("An Economic Analysis of Financial Structure")
(3/30/2011) ** L. Tesfatsion, Notes on Mishkin Chapter 8 (html), (ppt,408K).
(4/3/2011) ** L. Tesfatsion, "The Enron Scandal and Moral Hazard" (ppt,296K)
** ANSWER KEY (answers at end) for Take-Home Exercise 10 on Mishkin Chapter 8 (Due: Tuesday, April 12, 12:40pm).

Mishkin Chapter 9: Financial Crises and the Subprime Meltdown

** Key in-class discussion questions for Mishkin Chapter 9
** Mishkin Chapter 9 ("Financial Crises and the Subprime meltdown")
** L. Tesfatsion, Notes on Mishkin Chapter 9 (html), (ppt,411K).
** ANSWER KEY (answers at end) for Take-Home Exercise 11 on Mishkin Chapter 9 (Due: Tuesday, April 19, 12:40pm).

Mishkin Chapter 10: Banking and the Management of Financial Institutions

** Key in-class discussion questions for Mishkin Chapter 10
** L. Tesfatsion, Notes on Mishkin Chapter 10 (html)
** Charles I. Jones, "The Global Financial Crisis: Overview", a Supplement to Macroeconomics (W.W.Norton), May 22, 2009.
(4/18/2011) ** L. Tesfatsion, Notes on the Grameen Bank and the Microcredit Movement (html), (ppt)

Mishkin Chapters 11-12: Banking Industry: Structure, Competition, and Regulation

** Key in-class discussion questions for Mishkin Chapters 11/12: Part A
** L. Tesfatsion, Notes on Mishkin Chapters 11/12:Part A (html), (ppt,397K)
** Take-Home Exercise 12 on Mishkin Chapters 10 and 11/12:Part A (Due: Tuesday, April 26, 12:40pm).

Econ 353: Money, Banking, and Financial Markets Spring 2011 Review Guide for the Comprehensive Final Exam: Topic Coverage and Required Materials