1. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 13 Money and Financial Markets

2. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 13-2 Figure 13-1 The Role of Financial Intermediaries and Financial Markets

3. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 13-3 Table 13-1 The Main Financial Intermediaries and Instruments in 2004 (1 of 2)

4. Table 13-1 The Main Financial Intermediaries and Instruments in 2004 (2 of 2)

5. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 13-5 Table 13-1 The Main Financial Intermediaries and Instruments in 2004

6. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 13-6 Table 13-2 Components of the M1 and M2 Measures of the Money Supply, February 2005 ($ billions)

7. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 13-7 Figure 13-2 Alternative Allocations of an Individual’s Monthly Paycheck Between Cash and Savings Deposits

8. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 13-8 International Perspective Cash Fades Out as Plastic Takes Over

9. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 13-9 Figure 13-3 The Effect of Financial Deregulation in the Commodity and Money Markets

10. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 13-10 Figure 13-4 The Effect of a Lower Money Supply on Interest Rates and Output

11. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 13-11 Figure 13-5 Effects on Real Output of Policies that Either Stabilize the Interest Rate or Stabilize the Real Money Supply when Either Commodity Demand or Money Demand Is Unstable