目录
出版说明<br/>作者简介<br/>前言<br/>术语表<br/>第一部分 绪论<br/>第1章 为什么研究金融市场与金融机构 1<br/>1.1 为什么研究金融市场 2<br/>1.2 为什么研究金融机构 6<br/>1.3 应用管理视角 8<br/>1.4 如何研究金融市场与金融机构 9<br/>1.5 网络练习 10<br/>1.6 结语 12<br/>本章小结 12<br/>关键术语 13<br/>简答题 13<br/>计算题 14<br/>网络练习 14<br/>第2章 金融体系概览 15<br/>2.1 金融市场的功能 16<br/>2.2 金融市场的结构 18<br/>2.3 金融市场国际化 20<br/>2.4 金融中介的功能：间接融资 22<br/>2.5 金融中介的类型 27<br/>2.6 金融体系的监管 31<br/>本章小结 34<br/>关键术语 35<br/>简答题 35<br/>网络练习 36<br/>第二部分 金融市场基础<br/>第3章 利率的含义及其在定价中的作用 37<br/>3.1 利率的衡量 38<br/>3.2 实际利率和名义利率的区别 48<br/>3.3 利率和收益率的区别 51<br/>本章小结 62<br/>关键术语 63<br/>简答题 63<br/>计算题 63<br/>网络练习 65<br/>第4章 为什么利率会变动 66<br/>4.1 资产需求的决定因素 67<br/>4.2 债券市场的供求 70<br/>4.3 均衡利率的变动 74<br/>本章小结 86<br/>关键术语 86<br/>简答题 86<br/>计算题 87<br/>网络练习 88<br/>网络附录 88<br/>第5章 利率的风险结构和期限结构 89<br/>5.1 利率的风险结构 90<br/>5.2 利率期限结构 97<br/>本章小结 113<br/>关键术语 114<br/>简答题 114<br/>计算题 115<br/>网络练习 116<br/>第6章 金融市场是否有效 117<br/>6.1 有效市场假说 118<br/>6.2 有效市场假说的例证 121<br/>6.3 有效市场假说的局限性 130<br/>6.4 行为金融 131<br/>本章小结 132<br/>关键术语 133<br/>简答题 133<br/>计算题 134<br/>网络练习 134<br/>第三部分 金融机构基础<br/>第7章 金融机构的成立 135<br/>7.1 全球金融结构的基本事实 136<br/>7.2 交易成本 139<br/>7.3 信息不对称：逆向选择和道德风险 140<br/>7.4 次品问题：逆向选择对金融机构的影响 141<br/>7.5 道德风险对债务合约和股权合约选择的影响 147<br/>7.6 道德风险对债务市场金融结构的影响 150<br/>7.7 利益冲突 157<br/>本章小结 162<br/>关键术语 163<br/>简答题 163<br/>计算题 164<br/>网络练习 165<br/>第8章 金融危机的出现及其对经济的危害 166<br/>8.1 什么是金融危机 167<br/>8.2 金融危机的动态发展 167<br/>本章小结 182<br/>关键术语 183<br/>简答题 183<br/>网络练习 183<br/>网络资料 184<br/>第四部分 中央银行与货币政策传导<br/>第9章 中央银行和联邦储备系统 185<br/>9.1 联邦储备系统的起源 186<br/>9.2 联邦储备系统的结构 187<br/>9.3 联邦储备系统的独立性 196<br/>9.4 美联储应该独立吗 198<br/>9.5 欧洲央行的结构和独立性 202<br/>9.6 其他国家中央银行的结构和独立性 204<br/>本章小结 206<br/>关键术语 207<br/>简答题 207<br/>网络练习 207<br/>第10章 货币政策传导 208<br/>10.1 美联储如何影响银行体系的准备金 209<br/>10.2 银行准备金市场与联邦基金利率 211<br/>10.3 传统货币工具 218<br/>10.4 非传统货币政策工具和量化宽松政策 222<br/>10.5 欧洲央行货币政策工具 229<br/>10.6 物价稳定性目标与名义锚 230<br/>10.7 货币政策的其他目标 232<br/>10.8 物价稳定是否为货币政策的首要目标 234<br/>10.9 通货膨胀目标 236<br/>10.10 央行是否应对资产价格泡沫做出反应：全球金融危机的教训 239<br/>本章小结 244<br/>关键术语 245<br/>简答题 246<br/>计算题 247<br/>网络练习 247<br/>第五部分 金融市场<br/>第11章 货币市场 249<br/>11.1 货币市场的界定 250<br/>11.2 货币市场的目标 252<br/>11.3 货币市场的参与者 253<br/>11.4 货币市场工具 256<br/>11.5 货币市场证券的比较 267<br/>本章小结 270<br/>关键术语 270<br/>简答题 270<br/>计算题 271<br/>网络练习 271<br/>第12章 债券市场 272<br/>12.1 资本市场的目标 273<br/>12.2 资本市场的参与者 273<br/>12.3 资本市场的交易 274<br/>12.4 债券的类型 274<br/>12.5 中长期国债 274<br/>12.6 市政债券 279<br/>12.7 公司债券 281<br/>12.8 债券的财务担保 287<br/>12.9 债券市场的监管 288<br/>12.10 当期收益率的计算 288<br/>12.11 息票债券的价值 290<br/>12.12 债券投资 293<br/>本章小结 294<br/>关键术语 295<br/>简答题 295<br/>计算题 295<br/>网络练习 296<br/>第13章 股票市场 297<br/>13.1 股票投资 298<br/>13.2 普通股的价格计算 303<br/>13.3 证券价格的市场决定 307<br/>13.4 估值误差 308<br/>13.5 股票市场指数 311<br/>13.6 购买国外股票 314<br/>13.7 股票市场监管 314<br/>本章小结 315<br/>关键术语 316<br/>简答题 316<br/>计算题 316<br/>网络练习 317<br/>第14章 抵押贷款市场 318<br/>14.1 抵押贷款的定义 319<br/>14.2 抵押贷款的特点 320<br/>14.3 抵押贷款的类型 325<br/>14.4 抵押贷款的机构 328<br/>14.5 贷款服务 329<br/>14.6 次级抵押贷款市场 330<br/>14.7 抵押贷款证券化 331<br/>本章小结 336<br/>关键术语 336<br/>简答题 336<br/>计算题 337<br/>网络练习 338<br/>第15章 外汇市场 339<br/>15.1 外汇市场介绍 340<br/>15.2 长期汇率 342<br/>15.3 短期汇率：供求分析 347<br/>15.4 汇率变动解析 349<br/>本章小结 360<br/>关键术语 360<br/>简答题 360<br/>计算题 361<br/>网络练习 362<br/>附录15A 利率平价条件 363<br/>第16章 国际金融体系 367<br/>16.1 外汇市场干预 368<br/>16.2 国际收支平衡表 372<br/>16.3 国际金融体系的汇率机制 373<br/>16.4 资本管制 384<br/>16.5 国际货币基金组织的作用 385<br/>本章小结 386<br/>关键术语 386<br/>简答题 387<br/>计算题 388<br/>网络练习 388<br/>第六部分 金融机构<br/>第17章 银行业和金融机构管理 389<br/>17.1 银行的资产负债表 390<br/>17.2 银行的基本业务 393<br/>17.3 银行管理的一般原则 396<br/>17.4 表外业务行为 404<br/>17.5 银行绩效的衡量 407<br/>本章小结 412<br/>关键术语 413<br/>简答题 413<br/>计算题 413<br/>网络练习 414<br/>第18章 金融监管 415<br/>18.1 金融监管的理论基础：信息不对称 416<br/>18.2 金融监管的类he Principal–Agent Problem 406<br/>Measuring Bank Performance 407<br/>Bank’s Income Statement 408<br/>Measures of Bank Performance 410<br/>Recent Trends in Bank Performance Measures 410<br/>summary 412<br/>key terms 413<br/>QuestIOns 413<br/>QuantItatIve PrOBlems 413<br/>weB exercIses 414 <br/>Chapter 18 Financial Regulation 415<br/>PrevIeW 415<br/>Asymmetric Information as a Rationale for Financial Regulation 416<br/>Government Safety Net 416<br/>glOBal The Spread of Government Deposit Insurance Throughout the World: Is This a Good Thing? 418<br/>Types of Financial Regulation 421<br/>Restrictions on Asset Holdings 421 <br/>Capital Requirements 422<br/>Prompt Corrective Action 423<br/>Financial Supervision: Chartering and Examination 423<br/>glOBal Where Is the Basel Accord Heading After the Global Financial Crisis? 424<br/>Assessment of Risk Management 425<br/>Disclosure Requirements 426<br/>Consumer Protection 427<br/>mInI-case Mark-to-Market Accounting and the Global Financial Crisis 428<br/>Restrictions on Competition 428<br/>mInI-case The Global Financial Crisis and Consumer Protection Regulation 429<br/>Macroprudential Versus Microprudential Supervision 430<br/>e-FInance Electronic Banking: New Challenges for Bank Regulation 430<br/>Summary 431<br/>glOBal International Financial Regulation 432<br/>Banking Crises Throughout the World in Recent Years 435<br/>“Déjà Vu All Over Again” 436<br/>The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 436<br/>Dodd-Frank 436 <br/>Too-Big-to-Fail and Future Regulation 438<br/>What Can Be Done About the Too-Big-to-Fail Problem? 438<br/>Other Issues for Future Regulation 439 <br/>summary 440<br/>key terms 440 <br/>QuestIOns 440 <br/>QuantItatIve PrOBlems 441<br/> weB exercIses 441<br/>weB aPPendIx 442 <br/>Banking Industry: Structure and Competition 443<br/> PrevIeW 443<br/>Historical Development of the Banking System 444<br/>Multiple Regulatory Agencies 446<br/>Financial Innovation and the Growth of the Shadow Banking System 446<br/>Responses to Changes in Demand Conditions: Interest Rate Volatility 447<br/>Responses to Changes in Supply Conditions: Information Technology 448<br/>e-FInance Will “Clicks” Dominate “Bricks” in the Banking Industry? 450<br/>e-FInance Why Are Scandinavians So Far Ahead of Americans in Using Electronic Payments and Online Banking? 451<br/>e-FInance Are We Headed for a Cashless Society? 452<br/>Securitization and the Shadow Banking System 453<br/>Avoidance of Existing Regulations 455<br/>mInI-case Bruce Bent and the Money Market Mutual Fund Panic of 2008 457<br/>the PractIcIng manager Profiting from a New Financial Product: A Case Study of Treasury Strips 457<br/> Financial Innovation and the Decline of Traditional Banking 459<br/>Structure of the U.S. Banking Industry 462<br/>Restrictions on Branching 463<br/>Response to Branching Restrictions 464<br/>Bank Consolidation and Nationwide Banking 465<br/>e-FInance Information Technology and Bank Consolidation 467<br/>The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 467<br/>What Will the Structure of the U.S. Banking Industry Look Like in the Future? 468<br/>Are Bank Consolidation and Nationwide Banking Good Things? 468<br/>Separation of the Banking and Other Financial Service Industries 469<br/>Erosion of Glass-Steagall 469<br/>The Gramm-Leach-Bliley Financial Services Modernization Act of 1999: Repeal of Glass-Steagall 470 Implications for Financial Consolidation 470 <br/>mInI-case The Global Financial Crisis and the Demise of Large, Free-Standing Investment Banks 471 <br/>Separation of Banking and Other Financial Services Industries Throughout the World 471<br/>Thrift Industry 472<br/>Savings and Loan Associations 472<br/> Mutual Savings Banks 472<br/>Credit Unions 473<br/>International Banking 473 Eurodollar Market 474 <br/>Structure of U.S. Banking Overseas 474 <br/>Foreign Banks in the United States 475 <br/>summary 476 <br/>key terms 477 <br/>QuestIOns 477<br/>weB exercIses 478 <br/>Chapter 20 The Mutual Fund Industry 479<br/>PrevIeW 479 <br/>The Growth of Mutual Funds 480<br/>The First Mutual Funds 480<br/>Benefits of Mutual Funds 480<br/>Ownership of Mutual Funds 481<br/>Mutual Fund Structure 484<br/>Open- Versus Closed-End Funds 484<br/>case Calculating a Mutual Fund’s Net Asset Value 485<br/>Organizational Structure 486<br/>Investment Objective Classes 486<br/>Equity Funds 486<br/>Bond Funds 488<br/>Hybrid Funds 489<br/>Money Market Funds 489<br/>Index Funds 491<br/>Fee Structure of Investment Funds 492<br/>Regulation of Mutual Funds 493<br/>Hedge Funds 494<br/>mInI-case The Long Term Capital Debacle 496<br/>Conflicts of Interest in the Mutual Fund Industry 497<br/>Sources of Conflicts of Interest 497 Mutual Fund Abuses 497 <br/>cOnFlIcts OF Interest Many Mutual Funds Are Caught Ignoring <br/>Ethical Standards 498 <br/>cOnFlIcts OF Interest SEC Survey Reports Mutual Fund Abuses Widespread 499 <br/>Government Response to Abuses 500<br/>summary 501<br/>key terms 501<br/>QuestIOns 501<br/>QuantItatIve PrOBlems 502<br/>weB exercIses 503 <br/>Chapter 21 Insurance Companies and Pension Funds 504 <br/>PrevIeW 504<br/>Insurance Companies 505<br/>Fundamentals of Insurance 505<br/>Adverse Selection and Moral Hazard in Insurance 506<br/>Selling Insurance 507 <br/>mInI-case Insurance Agent: The Customer’s Ally 507<br/>Growth and Organization of Insurance Companies 508<br/>Types of Insurance 508<br/>Life Insurance 509<br/>Health Insurance 513<br/>Property and Casualty Insurance 515<br/>Insurance Regulation 516<br/>the PractIcIng manager Insurance Management 517<br/>Screening 517 <br/>Risk-Based Premium 518<br/>Restrictive Provisions 518 <br/>Prevention of Fraud 518 <br/>Cancellation of Insurance 519<br/>Deductibles 519 <br/>Coinsurance 519 <br/>Limits on the Amount of Insurance 519<br/>Summary 520<br/>Credit Default Swaps 520<br/>cOnFlIcts OF Interest The AIG Blowup 521<br/>Pensions 521 <br/>cOnFlIcts OF Interest The Subprime Financial Crisis and the Monoline Insurers 522<br/>Types of Pensions 522<br/>Defined-Benefit Pension Plans 522<br/>Defined-Contribution Pension Plans 523<br/>Private and Public Pension Plans 524<br/>mInI-case Power to the Pensions 524<br/>Regulation of Pension Plans 528<br/>Employee Retirement Income Security Act 528<br/>Individual Retirement Plans 530<br/>The Future of Pension Funds 530<br/>summary 531<br/>key terms 531<br/>QuestIOns 531 <br/>QuantItatIve PrOBlems 532 <br/>weB exercIses 533 <br/>Chapter 22 Investment Banks, Security Brokers and Dealers, and Venture Capital Firms 534 <br/>PrevIeW 534<br/>Investment Banks 535<br/>Background 535<br/>Underwriting Stocks and Bonds 536<br/>Equity Sales 540<br/>Mergers and Acquisitions 541<br/>Securities Brokers and Dealers 542 <br/>Brokerage Services 543<br/>Securities Dealers 545<br/>mInI-case Example of Using the Limit-Order Book 546<br/>Regulation of Securities Firms 546<br/>Relationship Between Securities Firms and Commercial Banks 548<br/>Private Equity Investment 548<br/>Venture Capital Firms 548<br/>e-FInance Venture Capitalists Lose Focus with Internet Companies 553<br/>Private Equity Buyouts 553<br/>Advantages to Private Equity Buyouts 553<br/>Life Cycle of the Private Equity Buyout 554<br/>summary 554<br/>key terms 555<br/>QuestIOns 555<br/>QuantItatIve PrOBlems 556<br/>weB exercIses 557 <br/>Part seven the management OF FInancIal InstItutIOns <br/>Chapter 23 Risk Management in Financial Institutions 558<br/>PrevIeW 558<br/>Managing Credit Risk 559 <br/>Screening and Monitoring 559<br/>Long-Term Customer Relationships 560<br/>Loan Commitments 561<br/>Collateral 561<br/>Compensating Balances 562<br/>Credit Rationing 562<br/>Managing Interest-Rate Risk 563<br/>Income Gap Analysis 564<br/>Duration Gap Analysis 566<br/>Example of a Nonbanking Financial Institution 571<br/>Some Problems with Income Gap and Duration Gap Analyses 573<br/>the PractIcIng manager Strategies for Managing Interest-Rate Risk 574<br/>summary 575<br/>key terms 575 <br/>QuestIOns 575<br/>QuantItatIve PrOBlems 576 <br/>weB exercIses 578 <br/>Chapter 24 Hedging with Financial Derivatives 579 <br/>PrevIeW 579 <br/>Hedging 580<br/>Forward Markets 580 <br/>the PractIcIng manager Hedging Interest-Rate Risk <br/>with Forward Contracts 580 <br/>Interest-Rate Forward Contracts 580<br/>Pros and Cons of Forward Contracts 581<br/>Financial Futures Markets 582<br/>Financial Futures Contracts 582<br/>FOllOwIng the FInancIal news Financial Futures 583<br/>the PractIcIng manager Hedging with Financial Futures 584<br/>Organization of Trading in Financial Futures Markets 586<br/>Globalization of Financial Futures Markets 586<br/>Explaining the Success of Futures Markets 587<br/>mInI-case The Hunt Brothers and the Silver Crash 589<br/>the PractIcIng manager Hedging Foreign Exchange Risk with Forward and Futures Contracts 590<br/> Hedging Foreign Exchange Risk with Forward Contracts 590 <br/>Hedging Foreign Exchange Risk with Futures Contracts 591<br/>Stock Index Futures 591<br/>Stock Index Futures Contracts 592<br/>FOllOwIng the FInancIal news Stock Index Futures 592<br/>he PractIcIng manager Hedging with Stock Index Futures 593<br/>Options 594<br/>Option Contracts 594<br/>Profits and Losses on Option and Futures Contracts 595<br/>Factors Affecting the Prices of Option Premiums 598 <br/>Summary 599<br/> the PractIcIng manager Hedging with Futures Options 599<br/>Interest-Rate Swaps 601<br/>Interest-Rate Swap Contracts 601<br/>the PractIcIng manager Hedging with Interest-Rate Swaps 602<br/>Advantages of Interest-Rate Swaps 603 <br/>Disadvantages of Interest-Rate Swaps 603<br/>Financial Intermediaries in Interest-Rate Swaps 604<br/>Credit Derivatives 604<br/>Credit Options 605<br/> Credit Swaps 605<br/>Credit-Linked Notes 606 <br/>case Lessons from the Global Financial Crisis: When Are Financial Derivatives Likely to Be a Worldwide Time Bomb? 606<br/>SUMMARY 608<br/>KEY TERMS 608 <br/>QUESTIONS 609<br/>QUANTITATIVE PROBLEMS 609<br/>WEB EXERCISE 611<br/>WEB APPENDICES 611 <br/> <br/><br/>Contents on the Web <br/>the following updated chapters and appendices are available on our companion website at www.pearsonhighered.com/mishkin_eakins. <br/>Chapter 25 Financial Crises in Emerging Market Economies W-1 <br/> PrevIeW W-1<br/> Dynamics of Financial Crises in Emerging Market Economies W-2<br/> Stage One: Initial Phase W-3<br/> Stage Two: Currency Crisis W-5<br/> Stage Three: Full-Fledged Financial Crisis W-6<br/> case Crisis in South Korea, 1997–1998 W-7<br/> Financial Liberalization/Globalization Mismanaged W-7 Perversion of the Financial Liberalization/Globalization Process: Chaebols and the South Korean Crisis W-9<br/> Stock Market Decline and Failure of Firms Increase Uncertainty W-10<br/> Adverse Selection and Moral Hazard Problems Worsen and the Economy Contracts W-10<br/> Currency Crisis Ensues W-11<br/> Final Stage: Currency Crisis Triggers Full-Fledged Financial Crisis W-11<br/> Recovery Commences W-13<br/> case The Argentine Financial Crisis, 2001–2002 W-13<br/> Severe Fiscal Imbalances W-13<br/> Adverse Selection and Moral Hazard Problems Worsen W-14<br/> Bank Panic Begins W-14<br/> Currency Crisis Ensues W-14<br/> Currency Crisis Triggers Full-Fledged Financial Crisis W-16<br/> Recovery Begins W-17<br/> Preventing Emerging Market Financial Crises W-18<br/> Beef Up Prudential Regulation and Supervision of Banks W-18<br/> glOBal When an Advanced Economy Is Like an Emerging Market Economy: The Icelandic Financial Crisis of 2008 W-19<br/> Encourage Disclosure and Market-Based Discipline W-20<br/> Limit Currency Mismatch W-20<br/> Sequence Financial Liberalization W-20<br/> SUMMARY W-21<br/> KEY TERMS W-21<br/> QUESTIONS W-21 <br/>Chapter 26 Savings Associations and Credit Unions W-22 <br/>PrevIeW W-22<br/> Mutual Savings Banks W-23 <br/>Savings and Loan Associations W-24<br/> Mutual Savings Banks and Savings and Loans Compared W-24<br/> Savings and Loans in Trouble: The Thrift Crisis W-25<br/> Later Stages of the Crisis: Regulatory Forbearance W-26<br/> Competitive Equality in Banking Act of 1987 W-27<br/> Political Economy of the Savings and Loan Crisis W-28<br/> Principal–Agent Problem for Regulators and Politicians W-28 <br/>case Principal–Agent Problem in Action: Charles Keating and the Lincoln Savings and Loan Scandal W-29 <br/>Savings and Loan Bailout: Financial Institutions Reform, Recovery, and Enforcement Act of 1989 W-30<br/> The Savings and Loan Industry Today W-32<br/> Number of Institutions W-32<br/> S&L Size W-32<br/> S&L Assets W-33<br/> S&L Liabilities and Net Worth W-35<br/> Capital W-35<br/> Profitability and Health W-35<br/> The Future of the Savings and Loan Industry W-36<br/> Credit Unions W-37<br/> History and Organization W-38<br/> Sources of Funds W-42<br/> Uses of Funds W-44<br/> Advantages and Disadvantages of Credit Unions W-44<br/> The Future of Credit Unions W-45<br/> summary W-46 key terms W-47<br/> QuestIOns W-47<br/> weB exercIses W-48 <br/>Chapter 27 Finance Companies W-49<br/> PrevIeW W-49<br/> History of Finance Companies W-50<br/> Purpose of Finance Companies W-50<br/> Risk in Finance Companies W-51<br/> Types of Finance Companies W-52<br/> Business (Commercial) Finance Companies W-52<br/> Consumer Finance Companies W-54<br/> Sales Finance Companies W-56<br/> Regulation of Finance Companies W-56<br/> Finance Company Balance Sheet W-57<br/> Assets W-57<br/> Liabilities W-57<br/> Income W-58<br/> Finance Company Growth W-58 <br/>summary W-59<br/>key terms W-60<br/>QuestIOns W-60<br/>weB exercIses W-60 <br/>chaPter aPPendIces <br/>Chapter 4 Appendix 1: Models of Asset Pricing W-1 <br/>Chapter 4 Appendix 2: Applying the Asset Market Approach to a Commodity Market: The Case of Gold W-11 <br/>Chapter 4 Appendix 3: Loanable Funds Framework W-15 <br/>Chapter 4 Appendix 4: Supply and Demand in the Market for Money: The Liquidity Preference Framework W-19 <br/>Chapter 18 Appendix: Banking Crises Throughout the World W-31 <br/>Chapter 24 Appendix: More on Hedging with Financial Derivatives W-37型 421<br/>18.3 世界范围内的银行业危机 435<br/>18.4 《多德–弗兰克法案》和2010年的《消费者保护法案》 436<br/>18.5 “大而不倒”和未来的金融监管 438<br/>本章小结 440<br/>关键术语 440<br/>简答题 440<br/>计算题 441<br/>网络练习 441<br/>网络附录 442<br/>第19章 银行业：结构与竞争 443<br/>19.1 银行体系的发展历史 444<br/>19.2 金融创新和影子银行体系的发展 446<br/>19.3 美国银行业结构 462<br/>19.4 银行合并和全国性银行 465<br/>19.5 银行业和其他金融服务业的分业经营 469<br/>19.6 储蓄行业 472<br/>19.7 国际银行业 473<br/>本章小结 476<br/>关键术语 477<br/>简答题 477<br/>网络练习 478<br/>第20章 共同基金行业 479<br/>20.1 共同基金的成长 480<br/>20.2 共同基金的收益 480<br/>20.3 共同基金的结构 484<br/>20.4 投资目标分类 486<br/>20.5 投资基金的费用结构 492<br/>20.6 共同基金的监管 493<br/>20.7 对冲基金 494<br/>20.8 共同基金行业的利益冲突 497<br/>本章小结 501<br/>关键术语 501<br/>简答题 501<br/>计算题 502<br/>网络练习 503<br/>第21章 保险公司和养老基金 504<br/>21.1 保险公司 505<br/>21.2 保险公司的基本原则 505<br/>21.3 保险公司的组织和发展 508<br/>21.4 保险的种类 508<br/>21.5 养老金 521<br/>21.6 养老金的种类 522<br/>21.7 养老金计划的监管 528<br/>21.8 养老基金的未来发展 530<br/>本章小结 531<br/>关键术语 531<br/>简答题 531<br/>计算题 532<br/>网络练习 533<br/>第22章 投资银行、证券经纪人和经销商以及风险投资公司 534<br/>22.1 投资银行 535<br/>22.2 证券经纪人和经销商 542<br/>22.3 证券公司的监管 546<br/>22.4 证券公司和商业银行的关系 548<br/>22.5 私募股权投资 548<br/>22.6 私募股权收购 553<br/>本章小结 554<br/>关键术语 555<br/>简答题 555<br/>计算题 556<br/>网络练习 557<br/>第七部分 金融机构管理<br/>第23章 金融机构的风险管理 558<br/>23.1 信用风险管理 559<br/>23.2 利率风险管理 563<br/>本章小结 575<br/>关键术语 575<br/>简答题 575<br/>计算题 576<br/>网络练习 578<br/>第24章 利用金融衍生工具避险 579<br/>24.1 套期保值 580<br/>24.2 远期交易市场 580<br/>24.3 金融期货市场 582<br/>24.4 股票指数期货合约 591<br/>24.5 期权 594<br/>24.6 利率互换 601<br/>24.7 信用衍生工具 604<br/>本章小结 608<br/>关键术语 608<br/>简答题 609<br/>计算题 609<br/>网络练习 611<br/>网络附录 611<br/><br/><br/>Contents<br/>About the Authors<br/>Preface<br/>Part One IntrOductIOn <br/>Chapter 1 Why Study Financial Markets and Institutions? 1<br/>PrevIeW 1 Why Study Financial Markets? 2 <br/>Debt Markets and Interest Rates 2 <br/>The Stock Market 3<br/>The Foreign Exchange Market 4 <br/>Why Study Financial Institutions? 6 <br/>Structure of the Financial System 6<br/>Financial Crises 6<br/>Central Banks and the Conduct of Monetary Policy 7<br/>The International Financial System 7<b/>Banks and Other Financial Institutions 7<br/>Financial Innovation 7<br/>Managing Risk in Financial Institutions 8<br/>Applied Managerial Perspective 8<br/>How We Will Study Financial Markets and Institutions 9<br/>Exploring the Web 9<br/>Collecting and Graphing Data 10<br/>Web Exercise 10<br/>Concluding Remarks 12<br/>summary 12 <br/>key terms 13<br/>QuestIOns 13<br/>QuantItatIve PrOBlems 14<br/>weB exercIses 14 <br/>Chapter 2 Overview of the Financial System 15<br/>PrevIeW 15<br/>Function of Financial Markets 16<br/>Structure of Financial Markets 18<br/>Debt and Equity Markets 18<br/>Primary and Secondary Markets 18<br/>Exchanges and Over-the-Counter Markets 19<br/>Money and Capital Markets 20 <br/>Internationalization of Financial Markets 20 <br/>International Bond Market, Eurobonds, and Eurocurrencies 20<br/>GLOBAL Are U.S. Capital Markets Losing Their Edge? 21<br/>World Stock Markets 22 <br/>Function of Financial Intermediaries: Indirect Finance 22<br/>FOllOwIng the FInancIal news Foreign Stock Market Indexes 23<br/>glOBal The Importance of Financial Intermediaries Relative to Securities Markets: An International Comparison 23 Transaction Costs 23<br/>Risk Sharing 24<br/>Asymmetric Information: Adverse Selection and Moral Hazard 25<br/>Economies of Scope and Conflicts of Interest 26 <br/>Types of Financial Intermediaries 27<br/>Depository Institutions 27<br/>Contractual Savings Institutions 28<br/>Investment Intermediaries 30 <br/>Regulation of the Financial System 31<br/>Increasing Information Available to Investors 32<br/>Ensuring the Soundness of Financial Intermediaries 32 Financial Regulation Abroad 33 <br/>SUMMARY 34 <br/>KEY TERMS 35 <br/>QUESTIONS 35 <br/>WEB exercIses 36 <br/>PART TWO FUNDAMENTALS OF FINANCIAL MARKETS <br/>Chapter 3 What Do Interest Rates Mean and What Is Their Role in Valuation? 37<br/>PREVIEW 37<br/>Measuring Interest Rates 38<br/>Present Value 38<br/>Four Types of Credit Market Instruments 40<br/>Yield to Maturity 41<br/>GLOBAl Negative Interest Rates? Japan First, Then the United States, Then Europe 47<br/>The Distinction Between Real and Nominal Interest Rates 48 <br/>MInI-case With TIPS, Real Interest Rates Have Become Observable in the United States 51 <br/>The Distinction Between Interest Rates and Returns 51<br/>Maturity and the Volatility of Bond Returns: Interest-Rate Risk 54<br/>mInI-case Helping Investors Select Desired Interest-Rate Risk 55<br/>Reinvestment Risk 55 <br/>Summary 56<br/>the PractIcIng manager Calculating Duration to Measure Interest-Rate Risk 56<br/>Calculating Duration 57<br/>Duration and Interest-Rate Risk 61 <br/>summary 62<br/>key terms 63<br/>QuestIOns 63<br/>QuantItatIve PrOBlems 63<br/>weB exercIses 65 <br/>Chapter 4 Why Do Interest Rates Change?66 <br/>PrevIeW 66 <br/>Determinants of Asset Demand 67<br/>Wealth 67<br/>Expected Returns 67 <br/>Risk 68<br/>Liquidity 70<br/>Theory of Portfolio Choice 70<br/>Supply and Demand in the Bond Market 70<br/>Demand Curve 71<br/>Supply Curve 72<br/>Market Equilibrium 73<br/>Supply-and-Demand Analysis 74<br/>Changes in Equilibrium Interest Rates 74<br/>Shifts in the Demand for Bonds 75 <br/>Shifts in the Supply of Bonds 78<br/>case Changes in the Interest Rate Due to Expected Inflation: The Fisher Effect 80<br/>case Changes in the Interest Rate Due to a Business Cycle Expansion 82 <br/>case Explaining the Current Low Interest Rates in Europe, Japan, and the United States 83<br/>the PractIcIng manager Profiting from Interest-Rate Forecasts 84<br/>FOllOwIng the FInancIal news Forecasting Interest Rates 86<br/>summary 86<br/>key terms 86<br/>QuestIOns 86<br/>QuantItatIve PrOBlems 87 <br/>weB exercIses 88<br/>weB aPPendIces 88 <br/>Chapter 5 How Do Risk and Term Structure Affect Interest Rates? 89<br/>PrevIeW 89<br/>Risk Structure of Interest Rates 90<br/>Default Risk 90<br/>Liquidity 93<br/>case The Global Financial Crisis and the Baa-Treasury Spread 93<br/>Income Tax Considerations 94<br/>Summary 95 <br/>case Effects of the Bush Tax Cut and the Obama Tax Increase on Bond Interest Rates 96<br/>Term Structure of Interest Rates 97 <br/>FOllOwIng the FInancIal news Yield Curves 98<br/>Expectations Theory 99<br/>Market Segmentation Theory 103<br/>Liquidity Premium Theory 104 <br/>Evidence on the Term Structure 107<br/>Summary 108 <br/>mInI-case The Yield Curve as a Forecasting Tool for Inflation and the Business Cycle 109<br/>case Interpreting Yield Curves, 1980–2016 109<br/>the PractIcIng manager Using the Term Structure to Forecast Interest Rates 110<br/>summary 113<br/>key terms 114<br/>QuestIOns 114<br/>QuantItatIve PrOBlems 115<br/>weB exercIses 116 <br/>Chapter 6 Are Financial Markets Efficient? 117<br/>PrevIeW 117<br/>The Efficient Market Hypothesis 118<br/>Rationale Behind the Hypothesis 120<br/>Evidence on the Efficient Market Hypothesis 121<br/>Evidence in Favor of Market Efficiency 121<br/>mInI-case An Exception That Proves the Rule: Raj Rajaratnam and Galleon 122<br/>case Should Foreign Exchange Rates Follow a Random Walk? 124<br/>Evidence Against Market Efficiency 125<br/>Overview of the Evidence on the Efficient Market Hypothesis 127<br/>he PractIcIng manager Practical Guide to Investing in the Stock Market 127<br/>How Valuable Are Published Reports by Investment Advisers? 127<br/>mInI-case Should You Hire an Ape as Your Investment Adviser? 128<br/>Should You Be Skeptical of Hot Tips? 128<br/>Do Stock Prices Always Rise When There Is Good News? 129<br/>Efficient Markets Prescription for the Investor 129 <br/>Why the Efficient Market Hypothesis Does Not Imply That Financial Markets Are Efficient 130 <br/>case What Do Stock Market Crashes Tell Us About the Efficient Market Hypothesis? 131<br/>Behavioral Finance 131<br/>summary 132<br/>key terms 133<br/>QuestIOns 133<br/>QuantItatIve PrOBlems 134 weB exercIses 134 <br/>Part three Fundamentals OF FInancIal InstItutIOns <br/>Chapter 7 Why Do Financial Institutions Exist? 135 <br/>PrevIeW 135<br/>Basic Facts About Financial Structure Throughout The World 136 <br/>Transaction Costs 139<br/>How Transaction Costs Influence Financial Structure 139<br/>How Financial Intermediaries Reduce Transaction Costs 139<br/>Asymmetric Information: Adverse Selection and Moral Hazard 140<br/>The Lemons Problem: How Adverse Selection Influences Financial Structure 141<br/>Lemons in the Stock and Bond Markets 142<br/>Tools to Help Solve Adverse Selection Problems 142<br/> mInI-case The Enron Implosion 144 <br/>How Moral Hazard Affects the Choice Between Debt and Equity Contracts 147<br/>Moral Hazard in Equity Contracts: The Principal–Agent Problem 147<br/>Tools to Help Solve the Principal–Agent Problem 148<br/>How Moral Hazard Influences Financial Structure in Debt Markets 150<br/>Tools to Help Solve Moral Hazard in Debt Contracts 150<br/>Summary 152<br/>case Financial Development and Economic Growth 154<br/>mInI-case The Tyranny of Collateral 155<br/>case Is China a Counter-Example to the Importance of Financial Development? 156<br/>Conflicts of Interest 157 What Are Conflicts of Interest and Why Do We Care? 157<br/>Why Do Conflicts of Interest Arise? 157<br/>mInI-case The Demise of Arthur Andersen 159<br/>mInI-case Credit-Rating Agencies and the 2007–2009 Financial Crisis 160<br/>What Has Been Done to Remedy Conflicts of Interest? 160 <br/>mInI-case Has Sarbanes-Oxley Led to a Decline in U.S. Capital Markets? 162<br/>summary 162<br/>key terms 163 <br/>QuestIOns 163<br/>QuantItatIve PrOBlems 164 weB exercIses 165 <br/>Chapter 8 Why Do Financial Crises Occur and Why Are They So Damaging to the Economy? 166<br/>PrevIeW 166<br/>What Is a Financial Crisis? 167<br/>Agency Theory and the Definition of a Financial Crisis 167<br/>Dynamics of Financial Crises 167<br/>Stage One: Initial Phase 167<br/>Stage Two: Banking Crisis 170<br/>Stage Three: Debt Deflation 171<br/>case The Mother of All Financial Crises: The Great Depression 171<br/>Stock Market Crash 171<br/>Bank Panics 171<br/>Continuing Decline in Stock Prices 172 <br/>Debt Deflation 173<br/>International Dimensions 173<br/>case The Global Financial Crisis of 2007–2009 174<br/>Causes of the 2007–2009 Financial Crisis 174<br/>mInI-case Collateralized Debt Obligations (CDOs) 175<br/>Effects of the 2007–2009 Financial Crisis 176 <br/>InsIde the Fed Was the Fed to Blame for the Housing Price Bubble? 177<br/>glOBal The European Sovereign Debt Crisis 180<br/>Height of the 2007–2009 Financial Crisis 181<br/>summary 182<br/>key terms 183<br/>QuestIOns 183 <br/>weB exercIses 183 <br/>weB reFerences 184 <br/>Part FOur central BankIng and the cOnduct OF mOnetary POlIcy <br/>Chapter 9 Central Banks and the Federal Reserve System 185<br/>PrevIeW 185<br/>Origins of the Federal Reserve System 186 <br/>InsIde the Fed The Political Genius of the Founders of the Federal Reserve System 186<br/>Structure of the Federal Reserve System 187<br/>Federal Reserve Banks 188<br/>InsIde the Fed The Special Role of the Federal Reserve Bank of New York 189<br/>Member Banks 190<br/>Board of Governors of the Federal Reserve System 191<br/>Federal Open Market Committee (FOMC) 192<br/>InsIde the Fed The Role of the Research Staff 193<br/>Why the Chair of the Board of Governors Really Runs the Show 193<br/>InsIde the Fed The FOMC Meeting 194<br/>InsIde the Fed Green, Blue, Teal, and Beige: What Do These Colors Mean at the Fed? 195<br/>InsIde the Fed Styles of Federal Reserve Chairs: Bernanke and Yellen Versus Greenspan 195<br/>How Independent Is the Fed? 196<br/>Should the Fed Be Independent? 198 <br/>The Case for Independence 198<br/>The Case Against Independence 199<br/>Central Bank Independence and Macroeconomic Performance Throughout the World 200<br/>Explaining Central Bank Behavior 200<br/>InsIde the Fed The Evolution of the Fed’s Communication Strategy 201<br/>Structure and Independence of the European Central Bank 202 <br/>Differences Between the European System of Central Banks and the Federal Reserve System 202<br/>Governing Council 203<br/>How Independent Is the ECB? 204 <br/>Chapter 10 Structure and Independence of Other Foreign Central Banks 204<br/>Bank of Canada 204<br/>Bank of England 204<br/>Bank of Japan 205 <br/>The Trend Toward Greater Independence 206 <br/>summary 206 <br/>key terms 207 <br/>QuestIOns and PrOBlems 207 <br/>weB exercIses 207 <br/>Conduct of Monetary Policy 208 <br/>PrevIeW 208 <br/>How Fed Actions Affect Reserves in the Banking System 209<br/>Open Market Operations 209 Discount Lending 210 <br/>The Market for Reserves and the Federal Funds Rate 211<br/>Demand and Supply in the Market for Reserves 211<br/>How Changes in the Tools of Monetary Policy Affect the Federal Funds Rate 213<br/>case How the Federal Reserve’s Operating Procedures Limit Fluctuations in the Federal Funds Rate 217 <br/>Conventional Monetary Policy Tools 218<br/>Open Market Operations 218<br/>InsIde the Fed A Day at the Trading Desk 219<br/>Discount Policy and the Lender of Last Resort 219<br/>Reserve Requirements 222<br/>Interest on Reserves 222 <br/>Nonconventional Monetary Policy Tools and Quantitative Easing 222<br/>Liquidity Provision 223<br/>InsIde the Fed Fed Lending Facilities During the Global Financial Crisis 224<br/>Large-Scale Asset Purchases 225<br/>Quantitative Easing Versus Credit Easing 225<br/>Forward Guidance 227<br/>Negative Interest Rates on Banks’ Deposits 228 <br/>Monetary Policy Tools of the European Central Bank 229<br/>Open Market Operations 229<br/>Lending to Banks 229<br/>Interest on Reserves 230<br/>Reserve Requirements 230 <br/>The Price Stability Goal and the Nominal Anchor 230<br/>The Role of a Nominal Anchor 231<br/>The Time-Inconsistency Problem 231 <br/>Other Goals of Monetary Policy 232<br/>High Employment and Output Stability 232<br/>Economic Growth 233<br/>Stability of Financial Markets 233<br/>Interest-Rate Stability 233<br/>Stability in Foreign Exchange Markets 234 <br/>Should Price Stability Be the Primary Goal of Monetary Policy? 234<br/>Hierarchical vs. Dual Mandates 234<br/>Price Stability as the Primary, Long-Run Goal of Monetary Policy 235<br/>glOBal The European Central Bank’s Monetary Policy Strategy 236<br/>Inflation Targeting 236 Advantages of Inflation Targeting 236 <br/>InsIde the Fed Ben Bernanke and the Federal Reserve’s Adoption of Inflation Targeting 237<br/> Disadvantages of Inflation Targeting 238 <br/>Should Central Banks Respond to Asset-Price Bubbles? Lessons from the Global Financial Crisis 239<br/> Two Types of Asset-Price Bubbles 240<br/>The Debate over Whether Central Banks Should Try to Pop Bubbles 241 <br/>THE PRACTICING MANAGER Using a Fed Watcher 243<br/>SUMMARY 244<br/>KEY TERMS 245<br/>QUESTIONS 246<br/>QUANTITATIVE PROBLEMS 247<br/>WEB EXERCISES 247<br/>The Money Markets <br/>Part FIVE FINANCIAL MARKETS <br/>Chapter 11 the PractIcIng manager 249<br/>PREVIEW 249 <br/>The Money Markets Defined 250<br/>Why Do We Need the Money Markets? 250<br/>Money Market Cost Advantages 251<br/>The Purpose of the Money Markets 252<br/>Who Participates in the Money Markets? 253 <br/>U.S. Treasury Department 253 Federal Reserve System 253<br/>Commercial Banks 254<br/>Businesses 254 <br/>Investment and Securities Firms 255<br/>Individuals 255<br/>Money Market Instruments 256<br/>Treasury Bills 256<br/>case Discounting the Price of Treasury Securities to Pay the Interest 256<br/>mInI-case Treasury Bill Auctions Go Haywire 259<br/>Federal Funds 260<br/>Repurchase Agreements 261<br/>Negotiable Certificates of Deposit 262<br/>Commercial Paper 263<br/>Banker’s Acceptances 265<br/>Eurodollars 266<br/>glOBal Ironic Birth of the Eurodollar Market 266<br/>Comparing Money Market Securities 267<br/>Interest Rates 267 <br/>Liquidity 268<br/>How Money Market Securities Are Valued 269<br/>summary 270<br/> key terms 270 <br/>QuestIOns 270<br/>QuantItatIve PrOBlems 271<br/>weB exercIses 271 <br/>Chapter 12 The Bond Market 272<br/>PrevIeW 272<br/>Purpose of the Capital Market 273<br/>Capital Market Participants 273<br/>Capital Market Trading 274<br/>Types of Bonds 274<br/>Treasury Notes and Bonds 274<br/>Treasury Bond Interest Rates 275<br/>Treasury Inflation-Protected Securities (TIPS) 277<br/>Treasury STRIPS 277<br/>Agency Bonds 277 <br/>case The 2007–2009 Financial Crisis and the Bailout of Fannie Mae and Freddie Mac 278<br/>Municipal Bonds 279<br/>Risk in the Municipal Bond Market 281<br/>Corporate Bonds 281 Characteristics of Corporate Bonds 282 <br/>Types of Corporate Bonds 284<br/>Financial Guarantees for Bonds 287<br/>Oversight of the Bond Markets 288<br/>Current Yield Calculation 288<br/>Current Yield 289<br/>Finding the Value of Coupon Bonds 290<br/>Finding the Price of Semiannual Bonds 291<br/>Investing in Bonds 293<br/>summary 294 <br/>key terms 295 <br/>QuestIOns 295 <br/>QuantItatIve PrOBlems 295<br/>weB exercIse 296 <br/>Chapter 13 The Stock Market 297 <br/>PrevIeW 297<br/>Investing in Stocks 298 <br/>Common Stock vs. Preferred Stock 298 <br/>How Stocks Are Sold 299<br/>Computing the Price of Common Stock 303<br/>The One-Period Valuation Model 303<br/>The Generalized Dividend Valuation Model 304<br/>The Gordon Growth Model 305 <br/>Price Earnings Valuation Method 306 <br/>How the Market Sets Security Prices 307<br/>Errors in Valuation 308<br/>Problems with Estimating Growth 308<br/>Problems with Estimating Risk 309<br/>Problems with Forecasting Dividends 309<br/>case The 2007–2009 Financial Crisis and the Stock Market 310<br/>case The September 11<br/>Terrorist Attack, the Enron Scandal, and the Stock Market 310<br/>Stock Market Indexes 311<br/>mInI-case History of the Dow Jones Industrial Average 311<br/>Buying Foreign Stocks 314<br/>Regulation of the Stock Market 314<br/>The Securities and Exchange Commission 314<br/>summary 315<br/>key terms 316 <br/>QuestIOns 316 <br/>QuantItatIve PrOBlems 316<br/>weB exercIses 317 <br/>Chapter 14 The Mortgage Markets 318<br/>PrevIeW 318<br/>What Are Mortgages? 319<br/>Characteristics of the Residential Mortgage 320<br/>Mortgage Interest Rates 320<br/>case The Discount Point Decision 321<br/>Loan Terms 323<br/>Mortgage Loan Amortization 324<br/>Types of Mortgage Loans 325<br/>Insured and Conventional Mortgages 325<br/>Fixed- and Adjustable-Rate Mortgages 326<br/>Other Types of Mortgages 326<br/>Mortgage-Lending Institutions 328<br/>Loan Servicing 329<br/>e-FInance Borrowers Shop the Web for Mortgages 330<br/>Secondary Mortgage Market 330<br/>Securitization of Mortgages 331<br/>What Is a Mortgage-Backed Security? 331<br/>Types of Pass-Through Securities 333<br/>Subprime Mortgages and CDOs 334<br/>The Real Estate Bubble 335<br/>summary 336<br/>key terms 336 <br/>QuestIOns 336<br/>QuantItatIve PrOBlems 337<br/>weB exercIses 338 <br/>Chapter 15 The Foreign Exchange Market 339 <br/>PrevIeW 339<br/>Foreign Exchange Market 340<br/>What Are Foreign Exchange Rates? 341<br/>Why Are Exchange Rates Important? 341<br/>FOllOwIng the FInancIal news Foreign Exchange Rates 341<br/>How Is Foreign Exchange Traded? 342<br/>Exchange Rates in the Long Run 342<br/>Law of One Price 343<br/>Theory of Purchasing Power Parity 343<br/>Why the Theory of Purchasing Power Parity Cannot Fully Explain Exchange Rates 345<br/>Factors That Affect Exchange Rates in the Long Run 345<br/>Exchange Rates in the Short Run: A Supply and Demand Analysis 347<br/>Supply Curve for Domestic Assets 347<br/>Demand Curve for Domestic Assets 348<br/>Equilibrium in the Foreign Exchange Market 349<br/>Explaining Changes in Exchange Rates 349 Shifts in the Demand for Domestic Assets 349 <br/>Recap: Factors That Change the Exchange Rate 352 <br/>case Effect of Changes in Interest Rates on the Equilibrium Exchange Rate 354<br/>case Why Are Exchange Rates So Volatile? 356<br/>case The Dollar and Interest Rates 356<br/>case The Global Financial Crisis and the Dollar 358<br/>the PractIcIng manager Profiting from Foreign Exchange Forecasts 359<br/>summary 360<br/>key terms 360 <br/>QuestIOns 360 <br/>QuantItatIve PrOBlems 361<br/>weB exercIses 362 <br/>Chapter 15 Appendix The Interest Parity Condition 363 <br/>Comparing Expected Returns on Domestic and Foreign Assets 363 <br/>Interest Parity Condition 365 <br/>Chapter 16 The International Financial System 367 <br/>PrevIeW 367<br/>Intervention in the Foreign Exchange Market 368<br/>Foreign Exchange Intervention and Reserves in the Banking System 368 <br/>InsIde the Fed A Day at the Federal Reserve Bank of New York’s Foreign Exchange Desk 369 <br/>Unsterilized Intervention 370<br/>Sterilized Intervention 370<br/>Balance of Payments 372<br/>glOBal Why the Large U.S. Current Account Deficit Worries Economists 373<br/>Exchange Rate Regimes in the International Financial System 373<br/>Fixed Exchange Rate Regimes 373<br/>How a Fixed Exchange Rate Regime Works 374<br/>The Policy Trilemma 376<br/>Monetary Unions 377<br/>glOBal Will the Euro Survive? 378<br/>Currency Boards and Dollarization 37<br/>Speculative Attacks 378<br/>glOBal Argentina’s Currency Board 379<br/>Managed Float 379<br/>glOBal Dollarization 380<br/>case The Foreign Exchange Crisis of September 1992 380<br/>the PractIcIng manager Profiting from a Foreign Exchange Crisis 382<br/>case How Did China Accumulate over $3 Trillion of International Reserves? 383<br/>Capital Controls 384<br/>Controls on Capital Outflows 384<br/>Controls on Capital Inflows 384<br/>The Role of the IMF 385<br/>Should the IMF Be an International Lender of Last Resort? 385<br/>summary 386<br/>key terms 386<br/>QuestIOns 387 <br/>QuantItatIve PrOBlems 388<br/>weB exercIse 388 <br/>Part sIx the FInancIal InstItutIOns Industry <br/>Chapter 17 Banking and the Management of Financial Institutions 389<br/>PrevIeW 389<br/>The Bank Balance Sheet 390<br/>Liabilities 390<br/>Assets 392<br/>Basic Banking 393<br/>General Principles of Bank Management 396<br/>Liquidity Management and the Role of Reserves 396<br/>Asset Management 399<br/>Liability Management 400<br/>Capital Adequacy Management 401<br/> the PractIcIng manager Strategies for Managing Bank Capital 403<br/>case How a Capital Crunch Caused a Credit Crunch During the Global Financial Crisis 404 <br/>Off-Balance-Sheet Activities 404<br/>Loan Sales 405 Generation of Fee Income 405<br/>Trading Activities and Risk Management Techniques 405 <br/>cOnFlIcts OF Interest Barings, Daiwa, Sumitomo, Société Générale, and <br/>J.P. Morgan Chase: Rogue Traders and t
