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Unformatted text preview: Department of Economics So Chapter 1: Why Study Money, Banking, and Financial Markets? Econ 330: Money and Banking Fall 2007 Prof. Joseph Santos This outline draws from Frederic Mishkins Money, Banking and Financial Markets (2007) and, as such, contains copy written material. Please do not quote without proper citation. Department of Economics So  Why Study Financial Markets? Financial markets are real or virtual locations where people who have an excess of available funds transfer (directly) these funds to people who have a shortage of funds. Financial markets, such as bond and stock markets, are crucial to economic efficiency and, hence, economic growth, because they channel funds from people who do not have a productive use for them to those who do. Securities Bonds versus stocks Interest rates Bond versus stock markets Foreign exchange markets  Why Study Financial Markets?...
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This note was uploaded on 04/09/2008 for the course ECON 330 taught by Professor Santos during the Spring '08 term at SD State.
- Spring '08