Preliminaries on Financial Markets

  • Arlie O. Petters
  • Xiaoying Dong
Part of the Springer Undergraduate Texts in Mathematics and Technology book series (SUMAT)


This chapter provides an intuitive understanding of how interest rates, financial markets and the financial system work from a practical standpoint. It introduces basic concepts about infrastructures of securities markets and market liquidity; and terminologies about a bewildering array of interest rates, money, credit/debt and leverage, as well as some economic indicators. These concepts and terminologies will be directly or indirectly needed in later chapters.


Interest Rate Financial Market Security Market Market Maker Federal Fund Rate 
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Copyright information

© Arlie O. Petters and Xiaoying Dong 2016

Authors and Affiliations

  • Arlie O. Petters
    • 1
  • Xiaoying Dong
    • 1
  1. 1.Department of MathematicsDuke UniversityDurhamUSA

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