THE LEVEL OF INTEREST RATES
This chapter defines the concept of an interest rate and examines the forces that establish the
level of interest rates in the economy.
The chapter distinguishes between the concepts of the real inter
THE FEDERAL RESERVE AND ITS POWERS
CHAPTER OVERVIEW AND
This chapter summarizes the background, structure, and purposes of the Federal Reserve
System. Affectionately known in the financial world as the Fed, this uniquely American
THE FED AND INTEREST RATES
This chapter explains how and why the Fed influences the money supply and interest rates.
This chapter analyzes the Feds behavior in both normal times and times of financial crisis.
Monetary policy and
AN OVERVIEW OF FINANCIAL MARKETS AND INSTITUTIONS
This chapter introduces the concept of the financial system and explains its economic role
to channel savings into productive investment by bringing savers and borrowers together
This chapter explains the function of the capital markets: To finance real investmentthe
purchase of capital goods necessary for production.
This chapter describes the main types of bonds, bond markets, and bond mar
This chapter explains the economic role of the money markets.
This chapter compares and contrasts the 7 major money market instrumentsT-Bills,
Agencies, Fed Funds, Repurchase Agreements, Commercial Paper, Negotiabl
This chapter compares and contrasts the basic types of equity securities.
This chapter explains how equities enter the primary market and trade on different kinds of
This chapter explains a bas
THE STRUCTURE OF INTEREST RATES
This chapter examines security-specific factors that affect interest rates on debt securities. It
builds on Chapter 4s discussion of market factors (such as real rates and inflation).
BOND PRICES AND INTEREST RATE RISK
This chapter explains the time value of money and its application to bond pricing. The value
(price) of a bond is the present value of the future payments due the bondholder, discounted at
This chapter compares and contrasts mortgage markets with other capital markets.
This chapter describes different types of mortgages and mortgage-backed securities.
This chapter discusses the evolution of second
FINC 381 Lecture Notes
Why is finance a thing, why is it important enough to be a major?
In the modern day and age, there is basically nothing of importance
that we can accomplish without money
o Mother Theresas orphanage has an electric bill