Table of Contents :



I. INTRODUCTION.

1. Why Study Financial Markets and Institutions?

2. Overview of the Financial System.

II. FUNDAMENTALS OF INTEREST RATES.

3. Understanding Interest Rates.

4. The Behavior of Interest Rates.

5. The Risk and Term Structure of Interest Rates.

III. CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY.

6. Structure of Central Banks and the Federal Reserve System.

7. Conduct of Monetary Policy: Tools, Goals, and Targets.

IV. FINANCIAL MARKETS.

8. The Money Markets.

9. The Capital Markets.

10. The Efficient Market Hypothesis.

11. The Mortgage Markets.

12. The Foreign Exchange Market.

13. The International Financial System.

V. THE FINANCIAL INSTITUTIONS INDUSTRY.

14. Theory of Financial Structure.

15. The Banking Firm and Bank Management.

16. Commercial Banking Industry: Structure and Competition.

17. Savings Associations and Credit Unions.

18. Banking Regulation.

19. Insurance Companies and Pension Funds.

20. Venture Capital Firms, Finance Companies, and Financial Conglomerates.

21. Investment Banks, Brokerage Firms, and Mutual Funds.

VI. THE MANAGEMENT OF FINANCIAL INSTITUTIONS.

22. Risk Management in Financial Institutions.

23. Hedging with Financial Derivatives.

Glossary.

Answers to Selected Questions and Problems.

Index.