Difficult Terms mortgage backed securities, Sarbanes-Oxley Act, deposit rate vs. bank lending rate, yield to maturity, discount bond, commercial paper, asymmetric information, commercial bank vs. investment bank vs. credit union, bond yield Study these in Depth Be able to explain differences in interest rates Understand what financial markets do Understand the differences in types of financial instruments (treasury bills, treasury notes, corporate bonds, etc) How the value of the currency impacts purchases you make Properties of good money Differences between M1 vs. M2 Understand how to do present value and future value calculations The impact of inflation on interest rates The factors that influence bond prices and how to price bonds Understand the liquidity preference framework The impact of expectations on interest rates How to calculate liquidity premiums on multiyear bonds as well as the term structure