Financial Markets, Institutions and Money, 3rd edition, introduces students to the financial system and its operations and participants. The text offers a fresh, succinct analysis of the financial markets and discusses how the many participants in the financial system interrelate. This includes coverage of regulators, regulations and the Reserve Bank of Australia (RBA), which together ensure the system s smooth running.
The text has been significantly revised to take into account changes in the financial world. The global financial crisis GFC) of 2007 09 and its impact on the efficiency of the financial system has refocused the attention of the third edition of Financial Markets, Institutions and Money on the critical role that financial systems play in an economy.
FEATURES OF THIS EDITION
- A brand new chapter on financial mathematics.
- In Focus vignettes have been updated and now conclude with a series of questions, making them ideal for case study and group work.
- The GFC is considered in terms of the risk it posed to financial system stability and its impact on financial market participants.
- The RBA s determination and implementation of monetary policy during crisis and recovery is discussed.
About the authors xiii
1 Overview 1
2 The monetary authorities 63
3 The Reserve Bank of Australia and interest rates 101
4 The level of interest rates 131
5 Financial mathematics 157
6 Bond prices and interest rate risk 217
7 The structure of interest rates 257
8 Money markets 285
9 Bond markets 319
10 Equity markets 351
11 Derivatives markets 391
12 Foreign exchange markets 431
13 Regulation of financial institutions 475
14 Commercial bank operations 533
15 Nonbank financial institutions 601
16 International banking 641
17 Insurance, investment companies and superannuation 681
18 Investment banking and venture capital 733
19 Sustainability and the finance sector 771