Chapter One Moneyand Credit 1
Section 1 Money 1
Section 2 Credit 7
Chapter Two Financial Market 17
Section 1 Overview of Financial Market 17
Section 2 Traditional Financial Markets 19
Section 3 Derivative Market 40
Chapter Three Interest Rates 50
Section 1 Overview of Interest and Interest Rates 50
Section 2 Structure of Interest Rates 57
Chapter Four Foreign Exchange and Exchange Rates 63
Section 1 Overview of Foreign Exchange 63
Section 2 Major Factors Affecting the Change of Exchange Rates 67
Section 3 The Exchange Rate System 69
Chapter Five Commercial Banks 74
Section 1 Overview of Commercial Banks 74
Section 2 Commercial Bank Business 78
Section 3 Bank Risk Management and Internal Control 99
Section 4 Bank Performance and Accounting 134
Chapter Six Non-Bank Financial Institutions 144
Section 1 Overview of Non-Bank Financial Institutions 144
Section 2 Nonbank Financial Institutions（1） 148
Section 3 Nonbank Financial Institutions（2） 162
Chapter Seven The Central Bank 178
Section 1 Functions and Business of Central Banks 178
Section 2 Monetary Policy 181
Section 3 Financial Supervision and Regulation by the Central Bank 192
Chapter Eight Balance of Payments 195
Section 1 Overview of Balance of Payments 195
Section 2 Causes of Balance-of-Payments Disequilibrium 200
Section 3 Balance-of-Payments Adjustments 203
Section 4 Currency Convertibility 205
Chapter Nine International Capital Flow and International Reserve 209
Section 1 International Capital Flow 209
Section 2 International Reserve 215
Chapter Ten International Banking 225
Section 1 Overview of International Banking 225
Section 2 International Settlement 227
Section 3 International Trade Finance 242
Section 4 International Lending 252
Chapter Eleven Internet Finance 259
Section 1 Overview of Internet Finance 259
Section 2 Models of Internet Finance 263
Section 3 The Effect of Internet Finance 268
Chapter Twelve Securitization 272
Section 1 Overview of Securitization 272
Section 2 Mortgage Loans 275
Section 3 Mortgage Backed Securities 277
Section 4 Asset Backed Securities 285