Money and Capital Markets offers thorough coverage of financial institutuions and markets for upper level endergraduate and MBA students. Prerequisites for the text are an introductory finance course and basic knowledge of algebra. Money and capital Markets presents the major theories of the impact of inflation, government spending, and monetary policy upon interest rates. In order to emphasize factors determining the prices and risks of financial instruments, descriptive information about institutions is kept to a minimum. The links between different types of securities are shown through risk-free arbitrage. this allows lecturers and students to establish frameworks for linking different types of bonds and connecting futures markets with spot markets