Practice Exams

Week 1: Introduction to the Financial System

Reading

  1. Introduction: Chapter 1, pp. 2-5
  2. Financial institutions: Chapter 1, pp. 4-15
  3. Financial crises: Chapter 1, pp. 15-18
  4. Functions of money: Chapter 2, pp. 28-32
  5. Payments system: Chapter 2, pp. 32-39
  6. Money supply: Chapter 2, pp. 40-48

Resources

Class Slides

Exercises

Week 2: Federal Reserve System

Reading

  1. Structure of the Federal Reserve System: Chapter 13, pp. 434-444
  2. Central bank independence: Chapter 13, pp. 454-460

Resources

Class Slides

Exercises

Weeks 3-4: Money Supply Process

Reading

  1. Fed's balance sheets and open market operations: Chapter 14, pp. 469-477
  2. Money multiplier: Chapter 14, pp. 481-488; 501-502
  3. 2007-2009 Financial Crisis: Chapter 14, pp. 488-490

Resources

Class Slides

Exercises

Week 6: Monetary Policy Tools

Reading

  1. Goals of monetary policy: Chapter 15, pp. 503-510
  2. Monetary policy tools: Chapter 15, pp. 511-520
  3. Modern policy tools: Chapter 15, pp. 521-531

Resources

Class Slides

Exercises

Week 7: Interest Rates and Rates of Return

Reading

  1. Present values and future values: Chapter 3, pp. 55-63
  2. Debt instruments: Chapter 3, pp. 63-67
  3. Yield to maturity: Chapter 3, pp. 68-78
  4. Rates of return: Chapter 3, pp. 79-83

Resources

Class Slides

Exercises

Week 8: Markets for Bonds and Money

Reading

  1. Bond markets: Chapter 4, pp. 102-115
  2. Markets for money: Chapter 4, pp. 120-123

Resources

Class Slides

Exercises

Week 10: Risk and Term Structure of Interest Rates

Reading

  1. Risk structure of interest rates: Chapter 5, pp. 140-145
  2. Liquidity and taxes: Chapter 5, pp. 148-151
  3. Term structure: Chapter 5, pp. 153-165

Resources

Class Slides

Exercises

Week 11: Market Failures

Reading

  1. Transaction Costs Chapter 9, pp. 285-286
  2. Adverse selection Chapter 9, pp. 287-294/li>
  3. Moral hazard Chapter 9, pp. 295-301
  4. Greek Deal Stirs Moral Hazard Concerns (on Canvas)
  5. Timeline of Greek sovereign debt crisis (on Canvas)

Resources

Class Slides

Exercises

Week 13: Banking and Financial Crises

Reading

  1. Bank liabilities: Chapter 10, pp. 311-317
  2. Bank assets: Chapter 10, pp. 317-321
  3. Managing bank risks: Chapter 10, pp. 325-333
  4. Origins of financial crises: Chapter 12, pp. 393-395
  5. Financial crisis of 2007-2009: Chapter 12, pp. 406-411
  6. Financial crisis and financial regulation: Chapter 12, pp. 411-425

Resources

Class Slides

Exercises

Instructor

James Murray, Ph.D.

  2106 Wittich Hall
  608-785-6828
    608-406-4068
  jmurray@uwlax.edu

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I guarantee that coming to student hours to ask questions will increase your grade in the class. If you come and still get questions wrong on the exam about the topic we discussed, I will refund those points! This guarantee is subject to the following conditions:

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    It takes just a minute to fill out the form. On this form, we document very specifically what we discussed and we both agree that I have explained the topic sufficiently and that you have acquired a good understanding from our discussion.
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  4. You must have attended class when the topic was initially taught or had an excused absence and completed any online work that served as a substitute, including watching any instructional videos.
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  6. Only one guarantee form may be filed on a single day. Therefore, filing two or three guarantee forms before an exam will require at least two or three separate office hours visits, respectively.
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