1. An overview of the relationships among money, payments, and the financial system.
Exercise 1a: The Islands Exercise

Exercise 1b: What Asset Makes the Best Money?

2. Saving, Investment, and the Determination of Interest Rates
Exercise 2a: Sources and Uses of Funds in the United States
Exercise 2b: Adequacy of Saving Flows in the United States
Exercise 2b(1): Discussion Questions for Harris and Steindel
Exercise 2b(2): Discussion Questions for Webb
Exercise 2c: Present value analysis of the decision to go to college
Exercise 2d: Present value and internal rate of return
3. Pricing of Financial Assets
Exercise 3a: Discussion of "The Yield Curve and Inflation Expectations" by Alan Garner
Exercise 3b: Decision Making when Outcomes Are Uncertain
Exercise 3c: Benefits and Costs of Diversification

Exercise 3d: Stock Pricing Exercise

Exercise 3e: Discussion Questions for "Are Stocks Overvalued?" by Richard Kopcke

Exercise 3f: Discussion Questions for "Stock Market Efficiency: An Autopsy" by Peter Fortune

Exercise 3g: The Insurance Game

Exercise 3h: Derivative Securities Exercise
4. Financial Markets and Institutions
Exercise 4a: Analysis of a Bank Balance Sheet

Exercise 4b: Commercial Banks Exercise

Exercise 4c: Moral Hazard, Adverse Selection and Financial Intermediation Exercise

Exercise 4d: Deposit Insurance Discussion

5. Monetary Policy
Exercise 5a: Discussion of 'Targeting M2: The Issue of Monetary Control' by Daniel Thornton

Exercise 5b: Writing Discussion Questions for "How Useful are Taylor Rules for Monetary Policy?"

Exercise 5c: Discussion of "How Useful Are Taylor Rules for Monetary Policy?" by Sharon Kozicki