Contents
Preface ........................................................................................................................................................... v
Alternative Course Outlines......................................................................................................................... vii
Ancillary Items for Financial Markets and Institutions, Seventh Edition .................................................... xi
Part I Introduction ................................................................................................................................. 1
Chapter 1 Why Study Financial Markets and Institutions? ....................................................... 2
Chapter 2 Overview of the Financial System ............................................................................ 5
Part II Fundamentals of Financial Markets .......................................................................................... 9
Chapter 3 What Do Interest Rates Mean and What Is Their Role in Valuation? .................... 10
Chapter 4 Why Do Interest Rates Change? ............................................................................. 16
Chapter 5 How Do Risk and Term Structure Affect Interest Rates? ....................................... 23
Chapter 6 Are Financial Markets Efficient? ............................................................................ 29
Part III Fundamentals of Financial Institutions ................................................................................... 33
Chapter 7 Why Do Financial Institutions Exist? ..................................................................... 34
Chapter 8 Why Do Financial Crises Occur and Why Are They
So Damaging to the Economy? .............................................................................. 40
Part IV Central Banking and the Conduct of Monetary Policy .......................................................... 45
Chapter 9 Central Banks and the Federal Reserve System...................................................... 46
Chapter 10 Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics ......................... 50
Part V Financial Markets ..................................................................................................................... 57
Chapter 11 The Money Markets................................................................................................ 58
Chapter 12 The Bond Market .................................................................................................... 63
Chapter 13 The Stock Market ................................................................................................... 69
Chapter 14 The Mortgage Markets ........................................................................................... 75
Chapter 15 The Foreign Exchange Market ............................................................................... 86
Chapter 16 The International Financial System ........................................................................ 92
Part VI The Financial Institutions Industry .........................................................................................97
Chapter 17 Banking and the Management of Financial Institutions..........................................98
Chapter 18 Financial Regulation ............................................................................................. 106
Chapter 19 Banking Industry: Structure and Competition ...................................................... 114
Chapter 20 The Mutual Fund Industry .................................................................................... 117
Chapter 21 Insurance Companies and Pension Funds ............................................................. 123
iv Contents
full file at http://testbankcafe.EU
, Chapter 22 Investment Banks, Security Brokers and Dealers,
and Venture Capital Firms. .................................................................................. 128
Part VII The Management of Financial Institutions ............................................................................ 133
Chapter 23 Risk Management in Financial Institutions ........................................................... 134
Chapter 24 Hedging with Financial Derivatives ...................................................................... 143
Chapters on the Web
Chapter 25 Savings Associations and Credit Unions............................................................... 152
Chapter 26 Finance Companies ............................................................................................... 155
Solutions to Online Integrative Mini-Cases ............................................................................................... 157
Solutions to Online Mini-Cases.................................................................................................................. 163
Preface ........................................................................................................................................................... v
Alternative Course Outlines......................................................................................................................... vii
Ancillary Items for Financial Markets and Institutions, Seventh Edition .................................................... xi
Part I Introduction ................................................................................................................................. 1
Chapter 1 Why Study Financial Markets and Institutions? ....................................................... 2
Chapter 2 Overview of the Financial System ............................................................................ 5
Part II Fundamentals of Financial Markets .......................................................................................... 9
Chapter 3 What Do Interest Rates Mean and What Is Their Role in Valuation? .................... 10
Chapter 4 Why Do Interest Rates Change? ............................................................................. 16
Chapter 5 How Do Risk and Term Structure Affect Interest Rates? ....................................... 23
Chapter 6 Are Financial Markets Efficient? ............................................................................ 29
Part III Fundamentals of Financial Institutions ................................................................................... 33
Chapter 7 Why Do Financial Institutions Exist? ..................................................................... 34
Chapter 8 Why Do Financial Crises Occur and Why Are They
So Damaging to the Economy? .............................................................................. 40
Part IV Central Banking and the Conduct of Monetary Policy .......................................................... 45
Chapter 9 Central Banks and the Federal Reserve System...................................................... 46
Chapter 10 Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics ......................... 50
Part V Financial Markets ..................................................................................................................... 57
Chapter 11 The Money Markets................................................................................................ 58
Chapter 12 The Bond Market .................................................................................................... 63
Chapter 13 The Stock Market ................................................................................................... 69
Chapter 14 The Mortgage Markets ........................................................................................... 75
Chapter 15 The Foreign Exchange Market ............................................................................... 86
Chapter 16 The International Financial System ........................................................................ 92
Part VI The Financial Institutions Industry .........................................................................................97
Chapter 17 Banking and the Management of Financial Institutions..........................................98
Chapter 18 Financial Regulation ............................................................................................. 106
Chapter 19 Banking Industry: Structure and Competition ...................................................... 114
Chapter 20 The Mutual Fund Industry .................................................................................... 117
Chapter 21 Insurance Companies and Pension Funds ............................................................. 123
iv Contents
full file at http://testbankcafe.EU
, Chapter 22 Investment Banks, Security Brokers and Dealers,
and Venture Capital Firms. .................................................................................. 128
Part VII The Management of Financial Institutions ............................................................................ 133
Chapter 23 Risk Management in Financial Institutions ........................................................... 134
Chapter 24 Hedging with Financial Derivatives ...................................................................... 143
Chapters on the Web
Chapter 25 Savings Associations and Credit Unions............................................................... 152
Chapter 26 Finance Companies ............................................................................................... 155
Solutions to Online Integrative Mini-Cases ............................................................................................... 157
Solutions to Online Mini-Cases.................................................................................................................. 163
