TAILIEUCHUNG - Lecture Principles of money, banking, and financial markets (12th edition): Chapter 1 - Ritter, Silber, Udell

Chapter 1 - Introducing money, banking, and financial markets. In this chapter you will learn to see the importance of money, banking, and financial markets; understand possible careers that use the skills and knowledge gained through studying this topic. | Chapter 1 Introducing Money, Banking, and Financial Markets Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Learning Objectives • See the importance of money, banking, and financial markets • Understand possible careers that use the skills and knowledge gained through studying this topic Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 1-2 Introduction of Concepts • Financial Markets/Institutions – Bringing together of buyers and sellers of financial securities to establish prices – The formal setting/mechanism that brings buyers and sellers together to value financial assets – Provides a mechanism for those with excess funds (savers) to lend to those who need funds [borrowers] – Includes banks, savings and loans, credit unions, investment banks and brokers, mutual funds, stock and bond markets Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 1-3 1 Introduction of Concepts (Cont.) • Money – “Lubricant that greases the wheels of economic activity” – Not just limited to currency (bills and coins)—also includes demand deposits (checking accounts) issued by banks – Plays a key role in influencing the behavior of the economy as a whole and the performance of financial institutions and markets Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 1-4 Introduction of Concepts (Cont.) • Money (Cont.) – More broadly the monetary economy • Facilitates transactions within the economy • Principal mechanism through which central banks attempt to influence aggregate economic activity – Economic Growth – Employment – Inflation Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 1-5 Introduction of Concepts (Cont.) • Banking – Banks and other financial intermediaries take funds from one group (savers) and re-deploy these funds by investing or lending (borrowers) – Banks provide a place where individuals and businesses can invest their funds to earn interest with a minimum of risk – Well-equipped to invest in

• Ngân hàng - Tín dụng
• Financial markets
• Financial institutions
• Monetary policy
• International finance
• Monetary theory
• Financial institutions
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Lecture Financial markets and institutions
• Financial institutions markets
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation