The Role of Financial Institutions and Markets

Transcription

1 Contents Chapter 1 The Role of Financial Institutions and Markets 1.1 Financial System Financial Institutions Financial Markets Functions of Financial Markets The Role of Government in Financial Markets An Exchange Economy without Money Money and Financial Investment Financial Markets and Transformation of the Initial Endowment Real Investment and Diminishing Profits Real and Financial Investment Classification and Diversity of Financial Market Chapter Summary Theoretical Questions Chapter 2 Central Banking 2.1 Introduction History of Central Banking System Organization of the Central Bank Monetary Tools of the Central Bank Money and Behaviour of Central Bank Balance Sheet of Central Bank Chapter Summary Theoretical Questions... 21

2 Chapter 3 The Money Market 3.1 Introduction Valuation of Debt Instruments Money Market Instruments International Money Market Chapter Summary Theoretical Questions Practical Problems Chapter 4 The Bond Market 4.1 Introduction The Valuation of Bonds Bond Yields Bond Market in Nepal Bond Quotation Corporate Bond Market Municipal Bond Market The Mortgage Market The Bond Contract International Bond Market Chapter Summary Theoretical Questions Practical Problems Chapter 5 The Level and Structure Interest Rates 5.1 The Level of Interest Rate The Term Structure of Interest Rate Bond Portfolio Maturity Strategies Chapter Summary Theoretical Questions Practical Problems... 80

3 Chapter 6 Stock Market 6.1 Introduction Common Stock Rights and Responsibilities Organization of Stock Market Secondary Market OTC Market Third and Fourth Market Types of Order Trading Procedure and Practices Brokerage Industry Transaction Cost and Portfolio Management Margin Account Market Indexes Chapter Summary Theoretical Questions Practical Problems Chapter 7 Primary Market and Investment Banking 7.1 Introduction Primary Market (Scope and Size) Process of Issuing Securities Initial Public Offering Chapter Summary Theoretical Questions Chapter 8 Bank, Thrift Institution and Credit Union 8.1 Introduction Role of Financial Intermediaries Power of Depository Institutions Comparison of Activities: Bank, Thrifts and Credit Unions Chapter Summary Theoretical Questions

4 Chapter 9 Commercial Banking: Operations of Commercial Banks 9.1 Meaning of a Bank and Commercial Bank Liquidity Management Cash Management Methods or Techniques of Cash Management The Role of Banks in Delaying Payments Loan Operations at Commercial Bank Types of Bank Loans Loan Losses Chapter Summary Theoretical Questions Practical Problems Chapter 10 Management of Commercial Banks 10.1 Financial Statements as Managerial Tools Commercial Banks Ratios Relationships between Ratios Limitations of Ratio Analysis Analysis of Variations Leverage, Profitability and Risk Chapter Summary Theoretical Questions Practical Problems Chapter 11 Asset and Liability Management of Commercial Banks 11.1 Security Pricing Principles Bond Duration (D) The Two Sides of Interest Rate Risk Portfolio Immunization Techniques The Funding GAP Duration GAP

5 Chapter Summary Theoretical Questions Practical Problems Chapter 12 Investment Companies and Performance Evaluation 12.1 Introduction General Features of Investment Companies Net Assets Value (NAV) Types of Investment Companies Cost of Investing in Mutual Fund Regulation of Investment Companies Chapter Summary Theoretical Questions Practical Problem Chapter 13 The Money Market 13.1 Introduction How Insurance Companies Benefit Society? Risk and Return of Insurance Companies Types of Insurance Companies Investment Yield or Return and Risk Chapter Summary Theoretical Questions Practical Problem References