An Introduction to Financial Markets and Institutions

An Introduction to Financial Markets and Institutions is the best available introductory textbook for an undergraduate course on Financial Markets and Institutions. It provides balanced coverage of theories, policies, and institutions in a conversational style that avoids complex models and mathematics, making it a student-friendly text with many unique teaching features. Financial crises, global competition, deregulation, technological innovation, and growing government oversight have significantly changed financial markets and institutions.

Introduction:

An Introduction to Financial Markets and Institutions, Second Edition is or ga nized in seven parts:

• Part One consists of a four-chapter introduction. The student is introduced to the economy, money and credit, financial markets and products, and financial intermediaries.
• Part Two consists of four chapters on financial prices, including interest rate determination, the term structure of interest rates, the efficient market hypothesis, and exchange rate determination. An alternative model of equilibrium based on the flow of funds among sectors and market efficiency is also presented.
• Part Three consists of two chapters on the Fed and monetary policy.
• Part Four consists of four chapters on financial markets including the money market, the corporate and government bond markets, the stock market, and the mortgage market.
• Part Five has six chapters on financial institutions including commercial banking, savings associations and credit unions, regulation, insurance companies, pensions plans, securities firms, mutual funds, and financial conglomerates.
• Part Six has four chapters on managing financial risk that look at financial instability including Hyman Minsky’s financial instability hypothesis, risk assessment and management, forward futures, options and asset-backed securities, and interest rate and currency swaps.
• Part Seven has two chapters on the international financial system and monetary policy in an increasingly globalized environment.

An Introduction to Financial Markets and Institutions is designed to be flexible. After completing Part One, the instructor can emphasize the relevant parts of the text depending on the focus of the class. In parts that are not being emphasized, chapters may be skipped.

Contents:

• Money: A Unique Financial Instrument
• Financial Markets, Instruments, and Market Makers
• An Introduction to Financial Intermediaries and Risk
• Interest Rates and Bond Prices
• The Structure of Interest Rates
• Market Efficiency an the Flow of Funds Among Sectors
• How Exchange Rates Are Determined
• The Overseer: The Federal Reserve System
• Monetary Policy
• The Money Markets
• The Corporate and Government Bond Markets
• The Stock Market
• The Mortgage Market
• Commercial Banking
• Savings Associations and Credit Unions
• Regulation of the Financial System
• Insurance Companies
• Pension Plans and Finance Companies
• Securities Firms, Mutual Funds, and Financial Conglomerates
• Financial Instability and Strains on the Financial System
• Risk Assessment and Management
• Forward, Futures, and Options Agreements
• Asset-Backed Securities, Interest Rate Agreements, and Currency Swaps
• The International Financial System
• Monetary Policy in a Globalized Financial System

An Introduction to Financial Markets and Institutions By Maureen Burton, Reynold F. Nesiba, Bruce Brown pdf