This book focuses on the basic functions served by the financial system, while de-emphasizing its current structure and rules. Content of this book is based on five core principles (time has value, risk requires compensation, information is the basis for decisions, markets set prices and allocate resources, and stability improves welfare). Knowledge of these principles is the basis for learning…
This book is organized to help students understand both the financial system and its economc effect on their lives. That means surveying a broad series of topics, including what money is and how it is used; what a financial instrument is and how it is valued; what a financial market is and how it works; what a financial isntitution is and why we need it; and what a central bank is and how it op…