Principles of Money and Banking
Suitable for an undergraduate one semester or quarter course in money and banking, this title presents an understanding of the dynamic nature of the financial system and how it relates to the aggregate economy. It emphasizes the effects of structural change, globalization, financial innovation, and technology on the financial environment.
The new edition of this classic text is designed for an undergraduate one semester or quarter course in money and banking. Written in an informal, engaging style, with minimal math requirements, it gives students a unique understanding of the dynamic and evolving nature of the financial system and how it relates to the aggregate economy. "The Financial System and the Economy" incorporates numerous current, real-world examples - including the subprime lending crisis and the Fed's response. It emphasizes the effects of structural change, globalization, financial innovation, and technology on the financial environment. An online Instructor's Manual with Test Bank is available for instructors who adopt the text.
Part 1. Introduction; 1. Introduction and Overview; 2. Money and Its Role in the Economy; 3. The Overseer: The Federal Reserve System; 4. Financial Markets, Instruments, and Market Makers; Part 2. Financial Prices; 5. Interest Rates and Bond Prices; 6. The Structure of Interest Rates; 7. Market Efficiency and the Flow of Funds Among Sectors; Part 3. Financial Institutions; 8. An Introduction to Financial Intermediaries and Risk; 9. Commercial Banking Structure, Regulation, and Performance; 10. Financial Innovation; 11. Financial Instability and Strains on the Financial System; 12. Regulation of the Banking System and the Financial Services Industry; Part 4. Financial Markets; 13. The Debt Markets; 14. The Stock Market; 15. Securities Firms, Mutual Funds, and Financial Conglomerates; 16. How Exchange Rates Are Determined; 17. Forward, Futures, and Options Agreements; 18. The International Financial System; Part 5. Monetary Theory; 19. The Fed, Depository Institutions, and the Money Supply Process; 20. The Demand for Real Money Balances and Market Equilibrium; 21. Financial Aspects of the Household, Business, Government, and Rest-of-the-World Sectors; 22. Aggregate Demand and Aggregate Supply; Part 6. Monetary Policy; 23. The Challenges of Monetary Policy; 24. The Process of Monetary Policy Formulation; 25. Policy Implementation; 26. Monetary Policy in a Globalized Financial System.