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Financial markets  and Institutions Required Reading: Mishkin, Chapter 1 and Chapter 2
CONTENTS ,[object Object],[object Object],[object Object]
AN OVERVIEW OF FINANCIAL SYSTEM
I. AN OVERVIEW OF FINANCIAL MARKETS  ,[object Object],[object Object],[object Object],[object Object]
What is Financial system? ,[object Object],[object Object]
1. What is Financial Markets? ,[object Object],[object Object],[object Object],[object Object]
I.1 What is Financial Markets? ,[object Object],[object Object],[object Object],[object Object]
I.2 Structure of Financial Markets ,[object Object],[object Object],[object Object],[object Object],[object Object]
Debt vs Equity ,[object Object],[object Object],[object Object],[object Object],[object Object]
Debt vs Equity ,[object Object],[object Object],[object Object],[object Object]
PRIMARY MARKETS Vs SECONDERY MARKETS ,[object Object],[object Object],[object Object],[object Object]
MONEY MARKETS VS CAPITAL MARKETS ,[object Object],[object Object],[object Object]
I.3 INSTRUMENTS TRADED  IN THE FINANCIAL MARKETS ,[object Object],Source: Miskin
I.3. INSTRUMENTS TRADED  IN THE FINANCIAL MARKETS (Cont) ,[object Object],Source: Miskin
I.3 INSTRUMENTS TRADED  IN THE FINANCIAL MARKETS ,[object Object],[object Object],[object Object],[object Object]
I.3 INSTRUMENTS TRADED  IN THE FINANCIAL MARKETS ,[object Object],[object Object],[object Object]
Valuing a Bond Price of a bond is the sum of the discounted future cash flows.
Valuing a Bond ,[object Object],[object Object],[object Object]
Valuing a Bond ,[object Object],[object Object],[object Object]
Interest Rates ,[object Object],[object Object],[object Object]
What effects bond prices? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Functions of Financial markets ,[object Object],[object Object],[object Object],[object Object]
Functions of Financial markets ,[object Object],[object Object],[object Object],[object Object]
Functions of Financial markets ,[object Object],[object Object],[object Object],[object Object]
II.FINANCIAL INSTITUTIONS ,[object Object],[object Object],[object Object]
II.1What are Financial Institutions ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Engage in  trade in securities  (direct finance) Engage in  financial asset transformation  (indirect finance)
II.1What are Financial Institutions? (Cont) ,[object Object],[object Object],[object Object],[object Object]
II.1What are Financial Institutions? (Cont) ,[object Object],[object Object],[object Object],[object Object],[object Object]
II.1What are Financial Institutions? (Cont) ,[object Object],[object Object],[object Object],[object Object]
II.1What are Financial Institutions? (Cont) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
II.2 Function of Financial Intermediaries: Indirect Finance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
II.2 Functions of Financial Intermediaries: Indirect Finance ,[object Object],[object Object],[object Object],[object Object],[object Object]
II.2 Functions of Financial Intermediaries: Indirect Finance ,[object Object],[object Object]
II.3TYPES OF FINANCIAL  INTERMEDIARIES ,[object Object],[object Object],[object Object],[object Object]
Financial Intermediaries Contractual savings Institutions Investment Intermedaries Depository Institutions Commercial Bank Mutual Funds (Investment Funds) Finance Companies Pension Funds Credit Unions Insurance Companies Savings and Loans Associations (S&L) Mutual Saving Banks Money market Mutual Funds Specialized Banks
 
III. FINANCIAL REGULATION ,[object Object],[object Object],[object Object],[object Object]
III. FINANCIAL REGULATION ,[object Object],[object Object],[object Object],[object Object]
III. FINANCIAL REGULATION ,[object Object],[object Object],[object Object],[object Object]
III. FINANCIAL REGULATION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Financial regulation ,[object Object],[object Object],[object Object],[object Object]
Financial regulation ,[object Object],[object Object],[object Object]

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Financial market and institutions

  • 1. Financial markets and Institutions Required Reading: Mishkin, Chapter 1 and Chapter 2
  • 2.
  • 3. AN OVERVIEW OF FINANCIAL SYSTEM
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  • 17. Valuing a Bond Price of a bond is the sum of the discounted future cash flows.
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  • 36. Financial Intermediaries Contractual savings Institutions Investment Intermedaries Depository Institutions Commercial Bank Mutual Funds (Investment Funds) Finance Companies Pension Funds Credit Unions Insurance Companies Savings and Loans Associations (S&L) Mutual Saving Banks Money market Mutual Funds Specialized Banks
  • 37.  
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