PART I: INTRODUCTION
1. Why Study Financial Markets and Institutions?
2. Overview of the Financial System
PART II: FUNDAMENTALS OF FINANCIAL MARKETS
3. What Do Interest Rates Mean and What Is Their Role in Valuation?
4. Why Do Interest Rates Change?
5. How Do Risk and Term Structure Affect Interest Rates?
6. Are Financial Markets Efficient?
PART III: FUNDAMENTALS OF FINANCIAL INSTITUTIONS
7. Why Do Financial Institutions Exist?
8. Why Do Financial Crises Occur and Why Are They So Damaging to the Economy?
PART IV: CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY
9. Central Banks and the Federal Reserve System
10. Conduct of Monetary Policy
PART V: FINANCIAL MARKETS
11. The Money Markets
12. The Bond Market
13. The Stock Market
14. The Mortgage Markets
15. The Foreign Exchange Market
Appendix: The Interest Parity Condition
16. The International Financial System
PART VI: THE FINANCIAL INSTITUTIONS INDUSTRY
17. Banking and the Management of Financial Institutions
18. Financial Regulation
19. Banking Industry: Structure and Competition
20. The Mutual Fund Industry
21. Insurance Companies and Pension Funds
22. Investment Banks, Security Brokers and Dealers, and Venture Capital Firms
PART VII: THE MANAGEMENT OF FINANCIAL INSTITUTIONS
23. Risk Management in Financial Institutions
24. Hedging with Financial Derivatives