Money, Banking, and Financial Institutions: A Contemporary Approach is intended for courses called Money and Banking; Banking and Financial Institutions; Introduction to Financial Institutions, or similar titles taught primarily in the economics department at the undergraduate or MBA level, usually at four-year colleges and universities.
Money, Banking, and Financial Institutions: A Contemporary Approach is a clear and concise presentation of the basics of financial markets that presumes only principles of economics as preparation. This user-friendly text avoids unnecessary jargon, peripheral topics, and overly detailed explanations, making for a readable and engaging narrative. Key concepts are introduced in a consistent format, making it easier for learners to quickly locate the descriptions and remember them in a more structured way.
This book emphasizes how money and banking connects to the real world, often providing valuable insights into personal banking experiences students encounter daily. Its intuitive and research-based approach avoids rigorous explanations, the use of mathematics, and the IS-LM model. Key contemporary topics include the economics of credit cards and debit cards; the advantages and disadvantages of fixed rate mortgages and variable rate mortgages; the role of the Federal Deposit Insurance Corporation (FDIC) in insuring checking and savings deposits; how checks are processed throughout the banking system; what happens when a bank goes bankrupt; and how interest rate changes by the Federal Reserve affect the costs of consumer and student loans. It also provides useful insights into how the Federal Reserve responded to the terrorist attack on the United States in 2001; the Great Recession of 2007–2009; the COVID-19 pandemic; and recent turmoil in financial markets.