Study sets matching "banking chapter 10"
Study sets
Diagrams
Classes
Users
types of financial innovation
Response to Changes in Demand Conditions
Interest Rate Volatility
Adjustable-Rate Mortgages
1. responses to changes in demand conditions, ... 2. responses to…
- Interest Rate Volatility... - Adjustable-Rate Mortgages... - Finan…
We would expect the increase in interest-rate risk to increase…
Initially, an adjustable-rate mortgage might have a 5% interes…
types of financial innovation
1. responses to changes in demand conditions, ... 2. responses to…
Response to Changes in Demand Conditions
- Interest Rate Volatility... - Adjustable-Rate Mortgages... - Finan…
Interest
Commercial Bank
Mutual Savings Bank
Savings and Loans
A fee paid for the opportunity to use someone else's money ove…
Financial institutions owned by shareholders and operated for…
State chartered financial institutions operated by trustees fo…
Financial institutions specialized in providing funds to home…
Interest
A fee paid for the opportunity to use someone else's money ove…
Commercial Bank
Financial institutions owned by shareholders and operated for…
money
medium of exchange
barter
unit of account
Anything that serves as a medium of exchange, a unit of accoun…
anything that is used to determine value during the exchange o…
The direct exchange of one set of goods or services for another
a means for comparing the values of goods and services
money
Anything that serves as a medium of exchange, a unit of accoun…
medium of exchange
anything that is used to determine value during the exchange o…
Maturity date
Face value
Debenture
Mortgage bond
The date when a bond will be repaid.
The dollar amount that the bondholder will receive at the bond…
A bond that is backed only by the reputation of the issuing co…
A bond that is backed by assets of the corporation, also calle…
Maturity date
The date when a bond will be repaid.
Face value
The dollar amount that the bondholder will receive at the bond…
Federal Reserve System (Fed)
Federal Reserve notes
barter economy
commodity money
privately owned, publicly controlled, central bank of the Unit…
paper currency issued by the Fed that eventually replaced all…
moneyless economy that relies on trade or barter
money that has an alternative use as an economic good; gunpowd…
Federal Reserve System (Fed)
privately owned, publicly controlled, central bank of the Unit…
Federal Reserve notes
paper currency issued by the Fed that eventually replaced all…
Hedge
Bank Holding Company
Results of financial crisis
Glass-Steagall Banking Act of 1933
an investment to reduce the risk of adverse price movements in…
a company that controls one or more banks, but does not necess…
1) The Fed pushed Bear Stearns into the arms of J.P. Morgan to…
Enacted after Stock Market Crash of 1929 to protect depositors…
Hedge
an investment to reduce the risk of adverse price movements in…
Bank Holding Company
a company that controls one or more banks, but does not necess…
Macroeconomics
Money
3 Functions of money
Medium of exchange
study of the behavior of the economy as a whole and how major…
anything that people will accept in exchange for goods and ser…
1. Medium of Exchange 2. Standard of Value 3. Store of Value
a means through which goods and services can be exchanged.
Macroeconomics
study of the behavior of the economy as a whole and how major…
Money
anything that people will accept in exchange for goods and ser…
barter economy
commodity money
fiat money
Federal Reserve System (Fed)
a moneyless economy that relies on trade
money that has an alternative use as an economic good--corn, h…
money by government decree
privately owned, publically controlled, central bank of the Un…
barter economy
a moneyless economy that relies on trade
commodity money
money that has an alternative use as an economic good--corn, h…
sovereign wealth fund
edge corporations
correspondent bank
country risk
Excess funds that are segregated from a country's official cur…
Are financial corporations that are federally chartered and al…
Acts as a point of contact for other banks that do not have a…
The term for the entire range of political, legal, social, and…
sovereign wealth fund
Excess funds that are segregated from a country's official cur…
edge corporations
Are financial corporations that are federally chartered and al…
balance sheet
Balance Sheet Accounting Equation
asset
liability
a statement of value that an individual or a firm owns; in par…
assets = liabilities + shareholder's equity
something of value that an individual or a particular firm own…
something that an individual or a firm owes, particularly a fi…
balance sheet
a statement of value that an individual or a firm owns; in par…
Balance Sheet Accounting Equation
assets = liabilities + shareholder's equity
Refinancing
Fannie Mae and Freddie Mac
Put-Backs
Primary Deposits
taking out new loans at lower interest rates to replace existi…
government sponsored enterprises that Congress established to…
required banks to repurchase defaulted mortgages that failed t…
sources of funds
Refinancing
taking out new loans at lower interest rates to replace existi…
Fannie Mae and Freddie Mac
government sponsored enterprises that Congress established to…
Information Security Program
Peace of mind
Automatic Session expiration, and autom…
Multifactor Authentication
plan for ensuring that data and technology systems are not acc…
By protecting customer's information and privacy, banks provid…
Two security measures banks employ to prevent unauthorized acc…
Authentication by 2 or more of the following: something the cu…
Information Security Program
plan for ensuring that data and technology systems are not acc…
Peace of mind
By protecting customer's information and privacy, banks provid…
Barter
Representative money
FDIC
Federalist beliefs banking
Trading for goods and services
Piece of paper the holder can turn in for future value
Federal Deposit Insurance Corporation
Centralized national bank
Barter
Trading for goods and services
Representative money
Piece of paper the holder can turn in for future value
money
medium of exchange
barter
unit of account
Anything that serves as a medium of exchange, a unit of accoun…
Anything that is used to determine value during the exchange o…
The direct exchange of one set of goods or services for anothe…
A means for comparing the values of goods and services.
money
Anything that serves as a medium of exchange, a unit of accoun…
medium of exchange
Anything that is used to determine value during the exchange o…
Information Security Program
Peace of mind
Automatic Session expiration, and autom…
Multifactor Authentication
plan for ensuring that data and technology systems are not acc…
By protecting customer's information and privacy, banks provid…
Two security measures banks employ to prevent unauthorized acc…
Authentication by 2 or more of the following: something the cu…
Information Security Program
plan for ensuring that data and technology systems are not acc…
Peace of mind
By protecting customer's information and privacy, banks provid…
Money
medium of exchange
barter
standard of value
Anything that people will accept in exchange for goods and ser…
a means through which goods and services can be exchanged
the exchange of goods and services without using money
determines the economic worth in the exchange process
Money
Anything that people will accept in exchange for goods and ser…
medium of exchange
a means through which goods and services can be exchanged
simple interest
rate
time
savings accounts
a one time payment or fee charged for the use of money loaned
the percent of interest charged for money loaned
a period of time for which money is loaned
bank accounts in which people can earn interest on money depos…
simple interest
a one time payment or fee charged for the use of money loaned
rate
the percent of interest charged for money loaned
money
medium of exchange
barter
unit of account
anything that serves as a medium of exchange, a unit of accoun…
anything that is used to determine value during the exchage of…
the direct exchage of one set of goods or sevices for another
a means for comparing the values of goods and services; compar…
money
anything that serves as a medium of exchange, a unit of accoun…
medium of exchange
anything that is used to determine value during the exchage of…
Interest
Commercial Bank
Mutual Savings Bank
Savings and Loan
A fee paid for the opportunity to use someone else's money ove…
Financial institutions owned by shareholders and operated for…
State-chartered financial institutions operated by trustees fo…
Financial institutions that originally specialized in providin…
Interest
A fee paid for the opportunity to use someone else's money ove…
Commercial Bank
Financial institutions owned by shareholders and operated for…
authority
benefits
board of directors
branch office
The power to affect or direct a situation or a worker's behavi…
Services, privileges, or rights that an employer provides in a…
A group of individuals elected by a bank's shareholders to rep…
A banking facility that is not the bank's main location.
authority
The power to affect or direct a situation or a worker's behavi…
benefits
Services, privileges, or rights that an employer provides in a…
money
medium of exchange
barter
standard of value
n. anything that people will accept as payment for goods and s…
n. a means through which goods and services can be exchanged (…
n. the exchange of goods and services without using money (p.…
n. the yardstick of economic worth in the exchange process (p.…
money
n. anything that people will accept as payment for goods and s…
medium of exchange
n. a means through which goods and services can be exchanged (…
money
medium of exchange
barter
unit of account
Anything that serves as a medium of exchange, a unit of accoun…
anything that is used to determine value during the exchange o…
The direct exchange of one set of goods or services for another
a means for comparing the values of goods and services
money
Anything that serves as a medium of exchange, a unit of accoun…
medium of exchange
anything that is used to determine value during the exchange o…
balance sheet
Bank Capital (shareholders equity)
Sources of funds
uses of funds
a statement that shows an individual's or a firm's financial p…
-The difference between the value of a bank's assets and the v…
-Primarily deposits; ... -Bank's liabilities and capital
-Primarily loans... -Banks assets
balance sheet
a statement that shows an individual's or a firm's financial p…
Bank Capital (shareholders equity)
-The difference between the value of a bank's assets and the v…
bank failure
bank panic
Basel Accord
Basel Committee on Banking Supervision
Bank is unable to meet its obligations to pay its depositors a…
many banks fail simultaneously
Agreement that required that banks hold as capital at least 8%…
international committee of bank supervisors that meets under t…
bank failure
Bank is unable to meet its obligations to pay its depositors a…
bank panic
many banks fail simultaneously