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Financial Markets: Chapter 1
Terms in this set (27)
Anything of value owned by a person or a firm; in particular, a financial claim.
A financial security issued by a corporation or a government that represents a promise to repay a fixed amount of money.
A situation in which the price of an asset rises well above the asset's fundamental value.
A financial firm that serves as a financial intermediary by taking in deposits and using them to make loans.
The division of wealth among many different assets to reduce risk.
A payment that a corporation makes to its shareholders, typically on a quarterly basis.
Federal Funds Rate
The interest rate that banks charge each other on short-term loans; determined by the demand and supply for reserves in the federal funds market.
The central bank of the United States.
An asset that represents a claim on someone else for a payment.
A significant disruption in the flow of funds from lenders to borrowers.
A financial firm, such as a bank, that borrows funds from savers and lends them to borrowers.
A financial claim owed by a person or a firm.
A place or channel for buying or selling stocks, bonds, and other securities.
Units of foreign currency.
Facts about borrowers and expectations of returns on financial assets.
The cost of borrowing funds (or the payment for lending funds), usually expressed as a percentage of the amount borrowed.
The ease with which an asset can be exchanged for money.
The actions the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomic policy objectives.
Anything that is generally accepted in payment for goods and services or to pay off debts.
The total quantity of money in the economy.
A collection of assets, such as stocks and bonds.
A financial market in which stocks, bonds, and other securities are sold for the first time.
A service the financial system provides that allows savers to spread and transfer risk.
A financial market in which investors buy and sell existing securities.
The process of converting loans and other financial assets that are not tradable into securities.
A financial asset that can be bought and sold in a financial market.
Financial securities that represent partial ownership of a firm; also called equities.
This set is often in folders with...
Financial Markets: Chapter 2
Financial Markets: Chapter 3
Financial Markets: Chapter 4
Financial Markets: Chapter 5
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