The Financial System and the Economy Principles of Money and Banking

by Burton, Maureen; Lombra, Raymond

• ISBN13: 9780324071825
• ISBN10: 0324071825
• Format: Hardcover
• Copyright: 2002-03-12
• Publisher: South-Western College Pub

Summary

This text gives students a unique understanding of the dynamic and evolving nature of the financial system and how it is related to the aggregate economy. It emphasizes the effects of structural change, globalization, financial innovation, and technology on the financial environment. Its highly applied, roots-in-reality approach incorporates numerous real-world applications and Internet features to demonstrate the relevance of topics. The text is written in an informal, conversational style, avoiding complex models and high-level math, making it perfect for the typical business major who may or may not have a strong economics background.

Table of Contents

Part One Introduction	1	(126)
Introduction and Overview	3	(20)
Principles of Money	23	(18)
The Role of Money and Credit	41	(20)
Analysis of the Financial System and the Economy	61	(20)
The Overseer: The Federal Reserve System	81	(24)
Financial Markets, Instruments, and Market Makers	105	(22)
Part Two Financial Prices	127	(96)
Interest Rates and Bond Prices	129	(22)
The Structure of Interest Rates	151	(24)
Market Efficiency	175	(20)
How Exchange Rates Are Determined	195	(28)
Part Three Financial Institutions	223	(152)
An Introduction to Financial Intermediaries and Risk	225	(26)
Commercial Banking Structure, Regulation, and Performance	251	(26)
Financial Innovation	277	(26)
Financial Instability and Strains on the Financial System	303	(22)
Regulation of the Banking System and the Financial Services Industry	325	(24)
Securities Firms, Mutual Funds, and Financial Conglomerates	349	(26)
Part Four Financial Markets	375	(110)
The Stock Market	377	(28)
The Debt Markets	405	(28)
Forward, Futures, and Options Agreements	433	(28)
The International Financial System	461	(24)
Part Five Monetary Theory	485	(112)
The Fed, Depository Institutions, and the Money Supply Process	487	(30)
The Demand for Real Money Balances and Market Equilibrium	517	(28)
Financial Aspects of the Household, Firm, Government, and Rest-of-the-World Sectors	545	(28)
Aggregate Demand and Aggregate Supply	573	(24)
Part Six Monetary Policy	597
The Challenges of Monetary Policy	599
The Process of Monetary Policy Formulation	621
Policy Implementation	639
Monetary Policy in a Globalized Financial System	659