Frederic S. Mishkin is the Alfred Lerner Professor of Banking and Financial Institutions at the Graduate School of Business, Columbia University.
Stanley G. Eakins has notable experience as a financial practitioner, serving as vice president and comptroller at the First National Bank of Fairbanks and as a commercial and real estate loan officer.
I. Introduction
1. Why Study Financial Markets and Institutions?
2. Overview of the Financial System
II. Fundamentals of Financial Markets
3. What Do Interest Rates Mean and What Is Their Role in Valuation?
4. Why Do Interest Rates Change?
5. How Do Risk and Term Structure Affect Interest Rates?
6. Are Financial Markets Efficient?
III. Fundamentals of Financial Institutions
7. Why Do Financial Institutions Exist?
8. Why Do Financial Crises Occur and Why Are They So Damaging to the Economy?
IV. Central Banking and the Conduct of Monetary Policy
9. Central Banks and the Federal Reserve System
10. Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
V. Financial Markets
11. The Money Markets
12. The Bond Market
13. The Stock Market
14. The Mortgage Markets
15. The Foreign Exchange Market
16. The International Financial System
VI. The Financial Institutions Industry
17. Banking and the Management of Financial Institutions
18. Financial Regulation
19. Banking Industry: Structure and Competition
20. The Mutual Fund Industry
21. Insurance Companies and Pension Funds
22. Investment Banks, Security Brokers and Dealers, and Venture Capital Firms
VII. The Management of Financial Institutions
23. Risk Management in Financial Institutions
24. Hedging with Financial Derivatives
Emphasis Critical Thinking with Key Features
Chapter Previews at the beginning of each chapter tell students where the chapter is heading, why specific topics are important, and how they relate to other topics in the book.
Numerical Examples guide students through solutions to financial problems using formulas, time lines, and calculator key strokes.
Summary Tables are useful study aids for reviewing material.
Key Statements are important points that are set in boldface type so that students can easily find them for later reference.
Graphs with captions, numbering over 60, help students understand the interrelationship of the variables plotted and the principles of analysis.
Summaries at the end of each chapter list the chapter's main points.
Key Terms are important words or phrases that appear in boldface type when they are defined for the first time and are listed at the end of each chapter.
End-of-Chapter Questions help students learn the subject matter by applying economic concepts, and feature a special class of questions that students find particularly relevant, titled "Predicting the Future."