Table of Contents Part 1: Introduction Chapter 1: Why Study Money, Banking, and Financial Markets? Chapter 2: An Overview of the Financial System Chapter 3: What Is Money? Part 2: Financial Markets Chapter 4: Understanding Interest Rates Chapter 5: The Behavior of Interest Rates Chapter 6: The Risk and Term Structure of Interest Rates Chapter 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis Part 3: Financial Institutions Chapter 8: An Economic Analysis of Financial Structure Chapter 9: Financial Crises Chapter 10: Banking and the Management of Financial Institutions Chapter 11: Economic Analysis of Financial Regulation Chapter 12: Banking Industry: Structure and Competition Chapter 13: Nonbank Finance Chapter 14: Financial Derivatives Chapter 15: Conflicts of Interest in the Financial Industry Part 4: Central Banking and the Conduct of Monetary Policy Chapter 16: Central Banks and the Federal Reserve System Chapter 17: The Money Supply Process Chapter 18: The Tools of Monetary Policy Chapter 19: The Conduct of Monetary Policy: Strategy and Tactics Part 5: International Finance and Monetary Policy Chapter 20: The Foreign Exchange Market Chapter 21: The International Financial System Part 6: Monetary Theory Chapter 22: Quantity Theory, Inflation, and the Demand for Money Chapter 23: Aggregate Demand and Supply Analysis Chapter 24: Monetary Policy Theory Chapter 25: Transmission Mechanisms of Monetary Policy