Introduction to Finance

Author: Guo Yequn and Xu Wenxin
Publisher:
Publish Date: 2005-03-01
Features: The development of finance has continuously enriched and deepened the connotation of the financial discipline. This requires us to constantly research new issues, theories, and methods, and to cultivate professionals with solid theoretical foundations and a spirit of exploration and innovation. To meet this need, we have compiled this book, "Introduction to Finance." This book takes the relationship between economics and finance as its main thread, consisting of nine chapters, covering topics such as money, credit, and finance; the business and operations of banking financial institutions; the business and operations of non-banking financial institutions; international finance; the central bank and monetary policy; money supply, inflation, deflation, and financial regulation, among others. The book's features are primarily reflected in three aspects.
First, the integration of theory and practice. The credit system formed by the development of money and monetary relations is the foundation of contemporary finance and also the starting point for understanding modern finance. Therefore, the book first explains the relationship between money, credit, and finance, then introduces financial institutions and financial markets. After understanding these two different financing methods—financial institutions and financial markets—the book goes on to discuss financial operations, as well as how the central bank's monetary policy macro-adjusts and controls finance, and how financial regulatory authorities oversee the banking, securities, and insurance industries. This approach helps students better understand practical financial life on a solid theoretical foundation.
Second, a combination of static and dynamic research. That is, incorporating content that reflects the changes in contemporary finance into the financial system and its characteristics is one of the innovations this book strives to achieve. From the origin of money to the formation of the credit system and the establishment of banking institutions, it has gone through a long process. Especially with the development of financial markets, the innovation of financial derivatives, and the internationalization of financing methods, the financial industry has experienced unprecedented growth. A dynamic research approach is beneficial for grasping the reasonable connotations and essential characteristics of its development. Therefore, the book's chapter arrangement highlights the innovation and development of the business of banking and non-banking financial institutions, as well as issues related to international finance.
Third, a combination of learning objectives and operational training. Each chapter of the book clearly states its learning objectives. Readers should first start with the learning objectives to understand the key points and requirements of each chapter. At the end of each chapter, there are key terms, self-assessment questions, and thought-provoking questions. Readers can consolidate their knowledge by completing these exercises. Additionally, each chapter is accompanied by case studies, which help readers gain a deeper understanding of the learned material.