A comprehensive analysis of capital markets is presented via the flow of funds from saver-lender to borrower-spender. The development of financial markets, their present structure and operations techniques, and the merits of the innovative investments they have created are examined in detail. Topics covered include: money and credit instruments; risk analysis; determination of interest rates; structure and operations of money, debt, capital and Euro markets; government regulations of financial markets; behavior of depository, contractual and investment intermediaries; and an evaluation of the changing roles of financial institutions