chapter 1money and monetary system structure of chapter 1 learning objectives opening vignette text 1.1the origin and definition of money 1.2the function of money 1.3the evolution of payment system 1.4monetary system summary of chapter 1 reading material professional words and expressions test yourself chapter 2credit structure of chapter 2 learning objectives opening vignette text 2.1an overview of credit 2.2the forms of credit summary of chapter 2 reading material professional words and expressions test yourself chapter 3interest and interest rate structure of chapter 3 learning objectives opening vignette text 3.1an overview of interest and interest rate 3.2calculation of interest and discounting 3.3the theory of term structure of interest rates 3.4the risk structure of interest rates summary of chapter 3 reading material professional words and expressions test yourself chapter 4foreign exchange and foreign exchange rates structure of chapter 4 learning objectives opening vignette text 4.1introduction to foreign exchange and exchange rates 4.2foreign exchange market 4.3theories of exchange rate determination summary of chapter 4 reading material professional words and expressions test yourself chapter 5financial market structure of chapter 5 learning objectives opening vignette text 5.1an overview of financial market 5.2money market 5.3capital market 5.4financial derivatives markets summary of chapter 5 reading material professional words and expressions test yourself chapter 6financial institutions structure of chapter 6 learning objectives opening vignette text 6.1economic basis for financial institution 6.2functions of financial institution 6.3types of financial institution summary of chapter 6 reading material professional words and expressions test yourself chapter 7the central bank structure of chapter 7 learning objectives opening vignette text 7.1an overview of the central bank 7.2the functions of the central bank 7.3the independence of the central bank 7.4the people?s bank of china summary of chapter 7 reading material professional words and expressions test yourself chapter 8money demand structure of chapter 8 learning objectives opening vignette text 8.1the implication of money demand 8.2the factors that determine demand for money 8.3theories of money demand summary of chapter 8 reading material professional words and expressions test yourself chapter 9money supply structure of chapter 9 learning objectives opening vignette text 9.1the quantity of money supply 9.2the mechanism of money supply 9.3the theories of money supply summary of chapter 9 reading material professional words and expressions test yourself chapter 10monetary policy structure of chapter 10 learning objectives opening vignette text 10.1the targets of monetary policy 10.2the instruments of monetary policy 10.3the transmission mechanism of monetary policy 10.4the potency of monetary policy summary of chapter 10 reading material professional words and expressions test yourself glossary bibliography