Chapter 1 Economics and Po1itics 1 Supp1ementary reading The Ro1e of Government in the Economy 11 Chapter 2 The Evo1ution of Economic Ideas 14 Supp1ementary reading Capita1ism and Feuda1ism 23 Chapter 3 Introduction to Economics 29 Supp1ementary reading What Is Macroeconomics? 38 Chapter 4 Introduction and Overview of Money and Finance 42 Supp1ementary reading The Financia1 System: Domestic and Internationa1 30 Chapter 5 The Evo1ution of the Payments System 54 Supp1ementary reading Austra1ian Payments System 63 Chapter 6 What Are Centra1 Banks? 67 Supp1ementary reading Restructuring of Chinese Banking Industry 76 Chapter 7 The Federa1 Reserve System 81 Supp1ementary reading Forma1 Structure of the Federa1 Reserve System 90 Chapter 8 Commercia1 Banks: History of Banking 95 Supp1ementary reading Comments on Ba1ance-sheet Items 704 Chapter 9 Bank Management 109 Supp1ementary reading Report Modu1e: 1ending / Deposit Business 118 Chapter 10 Financia1 Market 127 Supp1ementary reading Money Market Instrument 136 Chapter 11 The Investment Process 140 Supp1ementary reading Foreign Direct Investment in China's Regiona1 Deve1opment 150 Chapter 12 Insurance 155 Supp1ementary reading Insurance Powers of Banking Institutions 165 Chapter 13 Euro 170 Supp1ementary reading Euro Banknotes and Coins 181 Chapter 14 The Uruguay Round Subsidies Agreement 185 Supp1ementary reading Contract 196 Answer Key 200 Reference 213