Look at the question raised today by Greg Mankiw, regarding an exchange between Greenspan and Jon Stewart that occurred on The Daily Show (which I mentioned in class on Thursday).

From The Telegraph: The Saudis may be discontinuing tying their currency to the dollar.

From The Economist: A Very British Banking Crisis.

When a bond is exchanging hands in the bond market, we are seeing two goods being exchanged: the bond and the use of funds. Explain.

What factors affect bond demand and supply? Why does the bond supply curve slope up and the bond demand curve slope down in the bond market diagram?

How is the bond market related to the loanable funds market? If bond prices are currently above equilibrium, what can we infer about the pressure on interest rates in the loanable fund market? Why?

Regulatory differences between the U.S. and Great Britain means that U.S. bank runs are unlikely, writes the Associated Press.

In inflation-adjusted (real) terms, here are the richest Americans of all time. (Bill Gates comes in at number 13.)

Differentiate between Treasury Bills, Treasury Bonds, Treasury Notes, and Treasury Auctions.

Differentiate between a simple loan, a discount loan, a fixed payment loan, and a coupon bond.

How does a discount bond differ from a simple loan? What is the main difference between a coupon bond and a fixed payment loan?

Define: nominal yield, current yield, and yield to maturity.

Define nominal and real interest rates. Why might the actual real interest rate differ from the expected real interest rate? Would this possible difference be of more concern to you if you were considering making a loan to be paid back in one year or a loan to be paid back in 10 years?

Consider Irving Fisher. (Literally.) Explain the Fisher Hypothesis. Under what circumstances would the lender benefit in terms of purchasing power when interest rates and inflation rates differ?

What is the Prime Rate and the London Interbank Offer Rate.