A study of the basic theories of modern monetary systems. Covers the role of money and banks in the broader economy and the relevance of the Federal Reserve in connection with money and banking. Examines the role of financial markets and how financial institutions solve transaction costs and information problems. Utilizes a descriptive approach to the banking system, including bank management, the banking industry structure and regulation, and financial innovation. Topics on the Federal Reserve and monetary policy include the tools, goals, and strategies of central banking.