Includes bibliographical references and indexes.

Lending, payments, and risk-trading -- The financial system and its technology -- Efficiency, stability, and government intervention -- Interest rates, exchange rates, and security prices -- Understanding financial intermediaries -- What is a bank? -- The banking industry -- Payments and foreign exchange -- Insurance -- Pension funds and mutual funds -- Understanding financial markets -- The market for government securities -- The mortgage market -- The corporate debt market -- The equity market -- The derivatives market : futures, options, and swaps -- The organization of financial markets -- Managing liquidity and risk -- Bank safety and regulation -- Security market stability and regulation.