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Money, Banking, Financial Markets & Institutions

By Michael Brandl

2nd Edition © 2021
Discipline:Economics
Course:Money and Banking/Monetary Theory
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Bring concepts of money and banking to life with the student-oriented approach in Brandl’s MONEY, BANKING, FINANCIAL MARKETS AND INSTITUTIONS, 2E. While other books discuss the macroeconomy at the conclusion in a confusing blur of IS-LM and AS-AD models, this edition examines the macroeconomy early and clearly using only the AS-AD framework. The author places the Great Recession in proper historical context; then connects concepts with students' previous macroeconomic coursework. This thought-provoking approach carefully examines engaging topics, such as money markets and investments, including their economic foundations and the controversies within them. Students delve into topics other books gloss over, such as the globalization of financial markets, the disruption of technology to financial markets, and debates over consumer protection in financial markets. MindTap digital resources with Aplia homework solution further prepare students to understand, discuss and debate issues in banking and financial markets today.

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Bring concepts of money and banking to life with the student-oriented approach in Brandl’s MONEY, BANKING, FINANCIAL MARKETS AND INSTITUTIONS, 2E. While other books discuss the macroeconomy at the conclusion in a confusing blur of IS-LM and AS-AD models, this edition examines the macroeconomy early and clearly using only the AS-AD framework. The author places the Great Recession in proper historical context; then connects concepts with students' previous macroeconomic coursework. This thought-provoking approach carefully examines engaging topics, such as money markets and investments, including their economic foundations and the controversies within them. Students delve into topics other books gloss over, such as the globalization of financial markets, the disruption of technology to financial markets, and debates over consumer protection in financial markets. MindTap digital resources with Aplia homework solution further prepare students to understand, discuss and debate issues in banking and financial markets today.

MINDTAP WITH APLIA DIGITAL LEARNING SOLUTIONS ENSURE COMPREHENSION. MindTap helps you transform students into critical thinkers by using personalized assignments, applications, real-time course analytics, and an accessible reader. MindTap learning tools help you turn apathy into engagement and memorizers into higher-level thinkers. In addition, today's leading homework solution -- Aplia -- improves outcomes by increasing student engagement. Interactive assignments connect concepts to the real world while auto-graded homework ensures students come to class prepared.

APPROACHABLE, READER-ORIENTED WRITING STYLE ENCOURAGES STUDENT-CENTERED LEARNING. This edition reads like a conversation, rather than a lecture, as the author presents material in a unique way to foster discussion, contemplation, and debate as opposed to simple memorization. Rather than long, boring chapters that prompt students to simply use the text as a reference, the presentation inspires students to read the material before class and learn together -- and from each other -- with open-ended questions at the end of short, lively sections.

UNIQUE, DIGITAL SUPPORT THROUGHOUT MINDTAP REINFORCES KEY CONCEPTS FROM THE BOOK. A variety of digital assets available online through MindTap are tailored to the individual ways today's students learn. Readers are able to use a variety of tools to review and apply important course material in a dynamic, appealing way.

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Table of contents

Chapters

Cover Page
Title Page
Copyright Page
Preface
Acknowledgments for the Second Edition
Dedication
Acknowledgments for the First Edition
About the Author
Part 1. Money and Its Prices
Part 2. Money and the Overall Economy
Part 3. Central Banks
Part 4. The Banking System
Part 5. Financial Markets
Part 6. Global Financial Markets
Part 7. Financial Institutions
Show more

Part 1. Money and Its Prices

1. Introduction
Preview this section ↗
1-1. Why Study This Stuff? ↗
1-2. The Key Components ↗
1-2a. Money and Financial Assets ↗
1-2b. Financial Markets ↗
1-2c. Central Banks ↗
1-2d. Banking System and Financial Institutions ↗
In the News …. ‘We’ve Been Badly Served by Banks’: The Small Firms Seeking Ethical Banking ↗
2. Money, Money Supply, and Interest
2-1. The Concept of Money
2-1a. Money Defined
2-1b. Functions of Money
Section Review
2-2. Amount of Money and Money through Time
2-2a. The Amount of Money Matters
2-2b. Money through Time
Section Review
2-3. Money Supplies
2-3a. Monetary Aggregates
Section Review
2-4. The Price of Money: Interest Rates
2-4a. Time Value of Money
2-4b. Present Value
Section Review
2-5. Conclusion
In the News …. February Lending to Eurozone Businesses Picks Up
3. Bonds and Loanable Funds
3-1. Bonds Defined and Explained
3-1a. Bonds Defined
Section Review
3-2. Bond Prices and Yields
3-2a. Price of Bonds
Section Review
3-3. Supply and Demand for Bonds
3-3a. The Supply of Bonds
3-3b. Change in the Supply of Bonds
3-3c. The Demand for Bonds
3-3d. Change in the Demand for Bonds
3-3e. Equilibrium in the Bond Market
3-3f. New Equilibrium in the Bond Market
Section Review
3-4. Supply and Demand for Loanable Funds
3-4a. The Supply of Loanable Funds
3-4b. The Demand for Loanable Funds
3-4c. New Equilibrium in the Loanable Funds Market
Section Review
3-5. The Bond Market and Loanable Funds Market Compared
3-5a. The Fisher Effect
3-5b. Business Cycles and Confidence
Section Review
3-6. Conclusion
In the News …. Investors Gorge on Corporate Bonds after Fed “Capitulation”
4. Interest Rates in More Detail
4-1. Interest Rates in More Detail and Default Risk
4-1a. Default Risk
4-1b. Calculating DRP
4-1c. Comparing Default Risk of Different Financial Instruments
Section Review
4-2. Real versus Nominal: The Role of Inflation
4-2a. Why We Worry about Inflation
4-2b. Real versus Nominal Interest Rates
4-2c. Ex Post versus Ex Ante
4-2d. Example of Ex Ante versus Ex Post
Section Review
4-3. Taxes
4-3a. Before- and After-Tax Returns
4-3b. Municipal Bonds and Taxes
Section Review
4-4. Yield Curves
4-4a. Yield Curve Graph
4-4b. Yield Curve Facts
4-4c. Pure Expectations Theory
4-4d. Term Premium Theory
4-4e. Segmented Market Theory
Section Review
4-5. Yield Curve Applications
4-5a. Inverted Yield Curve
4-5b. Steep Yield Curve
4-5c. Flat Yield Curve
Section Review
4-6. Conclusion
In the News …. Investors Gorge on Corporate Bonds after Fed “Capitulation”
Tying Concepts Together. Summary of Money and Its Prices

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