Instructors: See links to new book-related pieces, along with instructor notes, below:

I. Money and the Financial System

Chapter 1.		An Introduction to Money and the Financial System
Chapter 2.		Money and the Payments System
Chapter 3.		Financial Instruments, Financial Markets, and Financial Institutions Applying the Concept: Foreign Investment and the Russian Legal System (82.0K) Example of the importance of investor protections.

II. Interest Rates, Financial Instruments and Financial Markets

Chapter 4.		Future Value, Present Value, and Interest Rates Web Calculators and Excel vs Book Methods of Computing Interest (65.0K) An explanation of why the book calculates interest payments different than Excel and certain web calculators.
Chapter 5.		Understanding Risk Applying the Concept: The Monte Hall Problem A Probability Paradox (71.0K) An example of the importance of listing all of the possibilities.
Chapter 6.		Bonds, Bond Prices, and the Determination of Interest Rates Applying the Concept: Using Debt to Smooth Consumption (107.0K) An application to show how debt can be used to make people better off. It also uses material from Chapter 5 on risk (standard deviation and variance). The History of Government Bonds (83.0K) Enrichment material for those who want to more than what is in the chapter introduction.
Chapter 7.		The Risk and Term Structure of Interest Rates Applying the Concept: The 30-year Treasury Bond Rises from Ashes (70.0K) For use with a discussion of the term structure of interest rates. Appendix: Making Informative Graphs (138.0K) Shows how to construct Figures at the end of the chapter.
Chapter 8.		Stocks, Stock Markets, and Market Efficiency Applying the Concept: Valuing Individual Equities: The CAPM (93.0K) For use after the discussion of the dividend-discount model with risk.
Chapter 9.		Derivatives: Futures, Options and Swaps The Origins of Derivatives (86.0K) Enrichment material that can be read along with the chapter at any time. Appendix: Payoff Diagrams for Futures and Options (84.0K) Tools to help students think about futures and options.
Chapter 10.		Foreign Exchange

III. Financial Institutions

Chapter 11.		The Economics of Financial Intermediation
Chapter 12.		Depository Institutions: Banks and Bank Management A History of Banking (88.0K) Enrichment material can be read along with the chapter at any time.
Chapter 13.		Financial Industry Structure Applying the Concept: Privatizing Social Security (73.0K)
Chapter 14.		Regulating the Financial System

IV. Central Banks, Monetary Policy and Financial Stability

Chapter 15.		Central Banks in the World Today
Chapter 16.		The Structure of Central Banks: The Federal Reserve and the European Central Bank Applying the Concept: The Fed after Alan Greenspan (72.0K) Focuses on politics and leadership at the Fed. Best used after discussion of the Fed structure is finished.
Chapter 17.		The Central Bank Balance Sheet and the Money Supply Process
Chapter 18.		Monetary Policy: Using Interest Rates to Stabilize the Domestic Economy
Chapter 19.		Exchange Rate Policy and the Central Bank

V. Monetary Economics

Chapter 20.		Money Growth, Money Demand, and Monetary Policy
Chapter 21.		Modern Monetary Policy and Aggregate Demand
Chapter 22.		Understanding Business Cycles Applying the Concept: Is it a Recessionary Gap or a fall in Potential Output? (111.0K)
Chapter 23.		Monetary Policy, Output, and Inflation in the Short Run Applying the Concept: Housing Bubbles and Monetary Policy (74.0K)