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Chapter 1 Introduction
Chapter 1 Introduction
Chapter 1 Introduction
INTRODUCTION TO
FINANCE AND
BANKING
Tran Ngoc Thanh
thanhtn@uef.edu.vn
Learning 0bjectives
● To examine how the workings of financial markets such
as bond, stock and foreign exchange markets affect your
everyday life.
● To examine how financial institutions work.
● To examine the role of money in the economy.
● Identify the basic links among monetary policy, the
business cycle, and economic variables.
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TIMELINE
Lesson 1 Why Study Money, Banking, and Financial Markets?
TIMELINE
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MATERIALS
MATERIALS
MAIN MATERIALS Mishkin, F. S., (2015). The Economics of Money, Banking and Financial
Markets, 11th Edition, Pearson Addison Wesley, Boston
PGS. TS. Sử Đình Thành và TS. Vũ Thị Minh Hằng, 2008, Nhập môn
Tài chính – Tiền tệ, NXB Lao Động Xã Hội
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Đại học Kinh tế - Tài chính thành phố Hồ Chí Minh
www.uef.edu.vn
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Table of contents
01 Financial Markets
& Securities 02 Financial Institutions
& Banking
03 Money &
Monetary Policy 04 Foreign Exchange Markets
& International Finance
Financial Markets
Financial markets are markets in which …… are …… from
people and firms who have an excess of available funds to
people and firms who have a need of funds.
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Bond Stock
Bond (intrest)
Bond issuer Bond Holder
(Borrower) (Lender)
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Face value
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Stock Market
Stock (dividend)
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Financial Intermediaries/Institutions
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18
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Increase in the
money supply might
cause ……
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Money growth
…… before
almost every
recession
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Monetary Policy
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Fiscal Policy
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Fiscal Policy
Figure 7 Government Budget Surplus or Deficit as a Percentage of Gross
Domestic Product, 1950–2016
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International Finance
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Other terms
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