Part I Money and the Financial System 1 chapter 1 An Introduction to Money and the Financial System 2 chapter 2 Money and the Payments System 13 chapter 3 Financial Instruments, Financial Markets, and Financial Institutions 35 Part Ⅱ Interest Rates, Financial Instruments, and Financial Markets 61 chapter 4 Future Value, Present Value, and Interest Rates 62 chapter 5 Understanding Risk 90 chapter 6 Bonds, Bond Prices, and the Determination of Interest Rates 119 chapter 7 The Risk and Term Structure of Interest Rates 149 chapter 8 Stocks, Stock Markets, and Market Efficiency 177 chapter 9 Derivatives: Futures, Options, and Swaps 202 chapter 10 Foreign Exchange 228 Part Ⅲ Financial Institutions 258 chapter 11 The Economics of Financial Intermediation 259 chapter 12 Depository Institutions: Banks and Bank Management 286 chapter 13 Financial Industry Structure 317 chapter 14 Regulating the Financial System 349 Part V Central Banks, Monetary Policy, and Financial Stability 375 chapter 15 Central Banks in the World Today 376 chapter 16 The Structure of Central Banks: The Federal Reserve and the European Central Bank 401 chapter 17 The Central Bank Balance Sheet and the Money Supply Process 426 chapter 18 Monetary Policy: Using Interest Rates to Stabilize the Domestic Economy 460 chapter 19 Exchange-Rate Policy and the Central Bank 489 Part V Modern Monetary Economics 518 chapter 20 Money Growth, Money Demand, and Modem Monetary Policy 519 chapter 21 Modem Monetary Policy and Aggregate Demand 550 chapter 22 Understanding Business Cycles 584 chapter 23 Monetary Policy, Output, and Inflation in the Short Run 618