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Kidwell's Financial Institutions, 12th Edition presents a balanced introduction to the operation, mechanics, and structure of the U.S. financial system, emphasizing its institutions, markets, and financial instruments. The text discusses complex topics in a clear and concise fashion with an emphasis on "Real World" data, and people and event boxes, as well as personal finance examples to help retain topical interest.
List of contents
TABLE OF CONTENTS
Part I The Financial System 1
Chapter 1 An Overview of Financial Markets and Institutions 3
Chapter Preview 4
Learning Objectives 4
1.1 The Financial System 4
1.2 Financial Markets and Direct Financing 7
Do You Understand? 10
People & Events: A Brief Examination of the Causes and Effects of the Global Financial Crisis of 2007 and 2008 11
1.3 Types of Financial Markets 12
1.4 The Money Markets 14
1.5 The Capital Markets 15
Do You Understand? 17
1.6 Financial Intermediaries and Indirect Financing 17
Do You Understand? 22
1.7 Types of Financial Intermediaries 23
Do You Understand? 27
1.8 The Risks Financial Institutions Manage 28
1.9 Regulation of the Financial System 29
People & Events: Systemically Risky Banks: What is the Solution? 33
1.10 Ethics and the Financial System 33
Do You Understand? 35
Summary of Learning Objectives 35
Key Terms 36
Questions and Problems 36
Chapter 2 The Federal Reserve and Its Powers 38
Chapter Preview 39
Learning Objectives 39
2.1 Origins of the Federal Reserve System 39
People & Events: Banking before 1933, Banking from 1933 to 1980, and Banking in the Modern Era 43
2.2 The Current Structure of the Fed 44
2.3 Monetary Powers of the Board of Governors 47
2.4 The Fed's Regulatory Powers 47
2.5 Independence of the Fed 51
Do You Understand? 53
2.6 The Fed's Balance Sheet 53
2.7 The Fed's Role in Check Clearing and the Growth of Electronic Payments 59
Learning by Doing 2.1: Computing a Bank's Excess Reserve Position 60
2.8 Federal Reserve Tools of Monetary Policy 61
People & Events: The Challenges of Fed Chair Janet Yellen 62
Learning by Doing 2.2: Calculating a Bank's Reserve Position 66
Summary of Learning Objectives 69
Key Terms 69
Questions and Problems 69
Chapter 3 The Fed and Interest Rates 71
Chapter Preview 72
Learning Objectives 72
3.1 Federal Reserve Control of the Money Supply 72
3.2 The Fed's Influence on Interest Rates 75
3.3 The Treasury Department and Fiscal Policy 79
Do You Understand? 81
3.4 Goals of Monetary Policy 82
People & Events: The Fed as Lender of Last Resort During the Financial Crisis 87
3.5 The Fed and the Economy 88
People & Events: Black Monday 91
3.6 Complications of Monetary Policy 91
3.7 Anatomy of a Financial Crisis 93
People & Events: Good Work If You Can Get It: Executive Bonuses During Bailouts? 100
Do You Understand? 101
Summary of Learning Objectives 102
Key Terms 102
Questions and Problems 102
Part II How Interest Rates are Determined 105
Chapter 4 The Level of Interest Rates 107
Chapter Preview 108
Learning Objectives 108
4.1 What are Interest Rates? 108
4.2 The Real Rate of Interest 109
4.3 Loanable Funds Theory of Interest 111
Do You Understand? 114
4.4 Price Expectations and Interest Rates 114
4.5 A Restatement of the Fisher Equation 116
People & Events: What Is the Actual Inflation Rate? 117
Do You Understand? 121
People & Events: Estimating the Expected Rate of Inflation from TIPS 122
4.6 Forecasting Interest Rates 122
4.7 Interest Rates and Currency Values 124
Summary
Kidwell's Financial Institutions, 12th Edition presents a balanced introduction to the operation, mechanics, and structure of the U.S. financial system, emphasizing its institutions, markets, and financial instruments. The text discusses complex topics in a clear and concise fashion with an emphasis on "Real World" data, and people and event boxes, as well as personal finance examples to help retain topical interest.
