Includes index.

Contents: 1. Overview of the financial environment: Role of financial markets and institutions -- Interest rate determination -- Interest rate structure -- 2. The Fed and monetary policy -- The Fed and its functions -- Monetary policy -- 3. Debt security markets: Money markets -- Bond markets -- Valuation and risk of bonds -- Mortgage markets -- 4. Equity markets: Investor monitoring and stock offerings -- Valuation and risk of stocks -- Markets microstructure and strategies -- 5. Derivative security markets: Financial futures markets -- Option markets -- Interest rate derivative markets -- Foreign exchange derivative markets -- 6. Commercial banking: Commercial bank operations -- Regulation of banks-- Bank management -- Bank performance -- 7. Nonbank operations: Thrift operations -- Finance company operations -- Mutual fund operations -- Securities operations -- Pension fund and insurance operations .