Brief Contents PART I: INTRODUCTION Why Study Financial Markets and Institutions?Overview of the Financial System PART II: FUNDAMENTALS OF FINANCIAL MARKETS What Do Interest Rates Mean and What Is Their Role in Valuation?Why Do Interest Rates Change?How Do Risk and Term Structure Affect Interest Rates?Are Financial Markets Efficient? PART III: FUNDAMENTALS OF FINANCIAL INSTITUTIONS Why Do Financial Institutions Exist?Why Do Financial Crises Occur and Why Are They So Damaging to the Economy? PART IV: CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY Central Banks and the Federal Reserve SystemConduct of Monetary Policy PART V: FINANCIAL MARKETS The Money MarketsThe Bond MarketThe Stock MarketThe Mortgage MarketsThe Foreign Exchange Market Appendix: The Interest Parity ConditionThe International Financial System PART VI: THE FINANCIAL INSTITUTIONS INDUSTRY Banking and the Management of Financial InstitutionsFinancial RegulationBanking Industry: Structure and CompetitionThe Mutual Fund IndustryInsurance Companies and Pension FundsInvestment Banks, Security Brokers and Dealers, and Venture Capital Firms PART VII: THE MANAGEMENT OF FINANCIAL INSTITUTIONS Risk Management in Financial InstitutionsHedging with Financial Derivatives CONTENTS ON THE WEB Financial Crises in Emerging Market EconomiesSavings Associations and Credit UnionsFinance Companies

Organize learning with a unifying analytic framework A unifying analytic framework uses a few basic principles to organize students’ thinking. These principles include: Asymmetric information (agency) problemsConflicts of interestTransaction costsSupply and demandAsset market equilibriumEfficient markets Help students transition from classroom to career with real-life business scenarios Cases demonstrate how the analysis in the book can explain many important real-world situations. A special set of cases called Case: Reading the Wall Street Journal show students how to read daily columns in this leading financial newspaper.The Practicing Manager special cases introduce students to real-world problems that financial institution managers have to solve.Following the Financial News boxes introduce students to relevant news articles and data often reported daily in financial news sources and explain how to read them.Inside the Fed boxes give students a feel for what is important in the operation and structure of the Federal Reserve System, and delve into major changes to monetary policy and lending following the financial crisis.Global boxes include interesting material with an international focus.E-Finance boxes relate how changes in technology have affected financial markets and institutions.Conflicts of Interest boxes outline conflicts of interest in different financial service industries.Mini-Case boxes highlight dramatic historical episodes, including a special focus on financial crises and trading scandals. These boxes also apply the theory to the data. Emphasize critical thinking with key features Chapter Previews at the beginning of each chapter give students an overview of the chapter, explaining why specific topics are important and how they relate to other topics in the book.Numerical Examples guide students through solutions to financial problems using formulas, timelines, and calculator keystrokes.Summary Tables are useful study aids for reviewing material.Key Statements highlight in boldface type important points so that students can easily find them for later reference.Graphs with over 60 captions, help students understand the interrelationship of the variables plotted and the principles of analysis.Summaries at the end of each chapter list the chapter’s main points.Key Terms are important words or phrases set in boldface type when defined for the first time and are listed at the end of each chapter.End-of-Chapter Questions help students learn the subject matter by applying economic concepts, and feature a special class of questions that students find particularly relevant, titled Predicting the Future.250+ End-of-Chapter Quantitative Problems help students develop their quantitative skills.Web Exercises encourage students to collect information from online sources or use online resources to enhance their learning experience.Web Sources provide the URL to data used in the many tables and charts.Marginal Web References indicate websites that provide information or data that supplement the text material.A Glossary at the back of the book defines all of the key terms.Full Solutions to the Questions and Quantitative Problems appear in the Instructor’s Manual and on the Instructor’s Resource Center online at pearsonhighered.com/irc. Professors are free to share the solutions with their students as they see fit. New in the 9th edition Updated - Data and major material throughout the text now reflects 2016 statistics and events.New - Material on financial markets and institutions now includes: A new section on hedge fundsAn updated Mini-Case box on negative interest rates in the United States, Europe, and JapanAn updated case on explaining low interest rates in Europe, Japan, and the United StatesA new Mini-Case box on the tyranny of collateralA new section describing securitization and the shadow banking systemNew - Material on monetary policy reflects the major changes in the way central banks conduct monetary policy since the global financial crisis. New material includes: An updated Inside the Fed box on how Janet Yellen’s style differs from former Federal Reserve chairsAn updated Inside the Fed box on the evolution of the Fed’s communication strategyA new section on how Federal Reserve actions affect reserves in the banking systemAn updated section on forward guidanceA new section on the policy tool, negative interest rates on bank deposits at central banksNew - Appendices on the web at www.pearsonhighered.com/mishkin_eakins allows for the addition and retention of material by posting the content online. Instructors can either use these appendices in class to supplement the material in the textbook or recommend them to students who want to expand their knowledge of the financial markets and institutions field. Financial Markets and Institutions is also available via Revel™, an interactive learning environment that enables students to read, practice, and study in one continuous experience. Learn more.

Financial Markets and Institutions is also available via Revel™, an interactive learning environment that enables students to read, practice, and study in one continuous experience. Learn more. New in the 9th edition Data and major material throughout the text now reflects 2016 statistics and events.Material on financial markets and institutions now includes: A new section on hedge fundsAn updated Mini-Case box on negative interest rates in the United States, Europe, and JapanAn updated case on explaining low interest rates in Europe, Japan, and the United StatesA new Mini-Case box on the tyranny of collateralA new section describing securitization and the shadow banking systemMaterial on monetary policy reflects the major changes in the way central banks conduct monetary policy since the global financial crisis. New material includes: An updated Inside the Fed box on how Janet Yellen’s style differs from former Federal Reserve chairsAn updated Inside the Fed box on the evolution of the Fed’s communication strategyA new section on how Federal Reserve actions affect reserves in the banking systemAn updated section on forward guidanceA new section on the policy tool, negative interest rates on bank deposits at central banksAppendices on the web at www.pearsonhighered.com/mishkin_eakins allows for the addition and retention of material by posting the content online. Instructors can either use these appendices in class to supplement the material in the textbook or recommend them to students who want to expand their knowledge of the financial markets and institutions field.