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FINANCIAL INSTRUMENTS & FINANCIAL MARKETS:Primarily Stores of Value
<<
FINANCIAL INTERMEDIARIES:Indirect Finance, Financial and Economic Development
FINANCIAL INSTITUTIONS:The structure of the financial industry
>>
Money
& Banking
MGT411
VU
Figure:
Market
size
and
investors
protection
3.5
·
UK
·
3.0
··
US
·
2.5
·
2.0
·
··
1.5
·
1.0
Greece
Norway
0.5
·Portugal
·
·
···
0
-2.5
-1.5
-0.5
0.5
1.5
-3.5
Less
More
Measure
of
investor
protection
19
Table of Contents:
TEXT AND REFERENCE MATERIAL & FIVE PARTS OF THE FINANCIAL SYSTEM
FIVE CORE PRINCIPLES OF MONEY AND BANKING:Time has Value
MONEY & THE PAYMENT SYSTEM:Distinctions among Money, Wealth, and Income
OTHER FORMS OF PAYMENTS:Electronic Funds Transfer, E-money
FINANCIAL INTERMEDIARIES:Indirect Finance, Financial and Economic Development
FINANCIAL INSTRUMENTS & FINANCIAL MARKETS:Primarily Stores of Value
FINANCIAL INSTITUTIONS:The structure of the financial industry
TIME VALUE OF MONEY:Future Value, Present Value
APPLICATION OF PRESENT VALUE CONCEPTS:Compound Annual Rates
BOND PRICING & RISK:Valuing the Principal Payment, Risk
MEASURING RISK:Variance, Standard Deviation, Value at Risk, Risk Aversion
EVALUATING RISK:Deciding if a risk is worth taking, Sources of Risk
BONDS & BONDS PRICING:Zero-Coupon Bonds, Fixed Payment Loans
YIELD TO MATURIRY:Current Yield, Holding Period Returns
SHIFTS IN EQUILIBRIUM IN THE BOND MARKET & RISK
BONDS & SOURCES OF BOND RISK:Inflation Risk, Bond Ratings
TAX EFFECT & TERM STRUCTURE OF INTEREST RATE:Expectations Hypothesis
THE LIQUIDITY PREMIUM THEORY:Essential Characteristics of Common Stock
VALUING STOCKS:Fundamental Value and the Dividend-Discount Model
RISK AND VALUE OF STOCKS:The Theory of Efficient Markets
ROLE OF FINANCIAL INTERMEDIARIES:Pooling Savings
ROLE OF FINANCIAL INTERMEDIARIES (CONTINUED):Providing Liquidity
BANKING:The Balance Sheet of Commercial Banks, Assets: Uses of Funds
BALANCE SHEET OF COMMERCIAL BANKS:Bank Capital and Profitability
BANK RISK:Liquidity Risk, Credit Risk, Interest-Rate Risk
INTEREST RATE RISK:Trading Risk, Other Risks, The Globalization of Banking
NON- DEPOSITORY INSTITUTIONS:Insurance Companies, Securities Firms
SECURITIES FIRMS (Continued):Finance Companies, Banking Crisis
THE GOVERNMENT SAFETY NET:Supervision and Examination
THE GOVERNMENT'S BANK:The Bankers' Bank, Low, Stable Inflation
LOW, STABLE INFLATION:High, Stable Real Growth
MEETING THE CHALLENGE: CREATING A SUCCESSFUL CENTRAL BANK
THE MONETARY BASE:Changing the Size and Composition of the Balance Sheet
DEPOSIT CREATION IN A SINGLE BANK:Types of Reserves
MONEY MULTIPLIER:The Quantity of Money (M) Depends on
TARGET FEDERAL FUNDS RATE AND OPEN MARKET OPERATION
WHY DO WE CARE ABOUT MONETARY AGGREGATES?The Facts about Velocity
THE FACTS ABOUT VELOCITY:Money Growth + Velocity Growth = Inflation + Real Growth
THE PORTFOLIO DEMAND FOR MONEY:Output and Inflation in the Long Run
MONEY GROWTH, INFLATION, AND AGGREGATE DEMAND
DERIVING THE MONETARY POLICY REACTION CURVE
THE AGGREGATE DEMAND CURVE:Shifting the Aggregate Demand Curve
THE AGGREGATE SUPPLY CURVE:Inflation Shocks
EQUILIBRIUM AND THE DETERMINATION OF OUTPUT AND INFLATION
SHIFTS IN POTENTIAL OUTPUT AND REAL BUSINESS CYCLE THEORY