Includes bibliographical references and index.

Why study financial markets and institutions? -- Overview of the financial system -- What do interest rates mean and what is their role in valuation? -- Why do interest rates change? -- How do risk and term structure affect interest rates? -- Are financial markets efficient? -- Structure of central banks and the federal reserve system -- Conduct of monetary policy : tools, goals, strategy, and tactics -- The money markets -- The bond market -- The stock market -- The mortage markets -- The foreign exchange market -- The international financial system -- Whay do financial institutions exist? -- What should be done about conflicts of interest? : a central issue in business ethics -- Banking and the management of financial institutions -- Commercial banking industry : structure and competition -- Savings associations and credit unions -- Banking regulation -- The mutual fund industry -- Insurance companies and pension funds -- Investment banks, security brokers and dealers, and venture capital firms -- Risk management in financial institutions -- Hedging with financial derivatives -- Finance companies.