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Study sets matching "banking financial markets"

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Study sets matching "banking financial markets"

71 terms
Money, Banking & Financial Markets
Investing in financial instruments in…
Identify which of the following is not…
Identify which item is not one of the…
The statement "risk requires compensat…
Chapter 1... Is made easier by the use of mutual funds
Chapter 1... Stability creates risk
Chapter 1... Credit cards
Chapter 1... Will only accept risk when they are rewarded for do…
Investing in financial instruments in…
Chapter 1... Is made easier by the use of mutual funds
Identify which of the following is not…
Chapter 1... Stability creates risk
36 terms
Banking & Financial Markets
Barter
Medium of Exchange
Currency
Fiat Currency
- trading goods and services without using money
- any instrument used to facilitate the sale, purchase, or tr…
- a generally accepted form of money
- currency that has value because the government says it does
Barter
- trading goods and services without using money
Medium of Exchange
- any instrument used to facilitate the sale, purchase, or tr…
17 terms
Money, Banking, and Financial Markets
stock
stock exchange
liquidity
bull market
a share of ownership in a corporation
place where stocks are bought and sold
the ability to be used as or directly turned into cash
stock prices steadily rise for a period of time
stock
a share of ownership in a corporation
stock exchange
place where stocks are bought and sold
54 terms
Banking & Financial Markets
Changes in what affect the price level…
If a borrower stops paying on a loan f…
If one buys shares of stock directly f…
If one buys shares of stock from other…
money supply
foreclosure
primary market
secondary market
Changes in what affect the price level…
money supply
If a borrower stops paying on a loan f…
foreclosure
35 terms
Taxes, Banking and Financial Markets
taxes
FDIC
interest
principal
what we pay for
Federal Deposit Insurance Corporation
the price paid for borrowed money
the amount of money borrowed
taxes
what we pay for
FDIC
Federal Deposit Insurance Corporation
29 terms
Banking and Financial markets
Barter
Medium of exchange
Currency
Fiat currency
Trading goods and services between two or more parties
Any instrument used to facilitate the sale, purchase, or trad…
Generally accepted form of money, including coins and paper n…
Currency that a government has declared to be legal money, de…
Barter
Trading goods and services between two or more parties
Medium of exchange
Any instrument used to facilitate the sale, purchase, or trad…
43 terms
Banking & Financial Markets
Money supply
Forclosure
Primary Market
Secondary Market
Changes in what affect the price level, inflation, and the bu…
Borrower stops paying on a loan for real estate lender can ca…
Buys directly from a company
Buys stock from other investors
Money supply
Changes in what affect the price level, inflation, and the bu…
Forclosure
Borrower stops paying on a loan for real estate lender can ca…
25 terms
Banking and financial markets
Medium of exchange
Barter
Unit of account
Store of value
Anything used to determine value of goods
Trade for goods and services
Compares the value of goods and services
Keeps its value even if you don't spend it
Medium of exchange
Anything used to determine value of goods
Barter
Trade for goods and services
42 terms
Banking and financial markets
Barter
Representative money
FDIC
Greenbacks
Trade for goods & services... Ex. Trade chickens for apples
Holder can turn it in for value
1933 guarantees every account up to $250,000
Nicknames of original notes
Barter
Trade for goods & services... Ex. Trade chickens for apples
Representative money
Holder can turn it in for value
50 terms
banking & financial markets
Changes in what affect the price level…
If one buys shares of stock directly f…
If one buys shares of stock from other…
In the bond market, what are the funds…
money supply
primary market
secondary market
principal
Changes in what affect the price level…
money supply
If one buys shares of stock directly f…
primary market
26 terms
Money, banking and financial markets
money
Income vs wealth
liquidity
market liquidity
is an asset that is generally accepted as payment of goods an…
is a flow of earnings overtime ( A flow concept) while wealth…
is a measure of the ease and speed with which an asset can be…
is the ability to sell assets for money.
money
is an asset that is generally accepted as payment of goods an…
Income vs wealth
is a flow of earnings overtime ( A flow concept) while wealth…
16 terms
Money and Banking Financial Markets
Financial Markets
Debt Instrument
Direct Finance
Financial Instruments
Describes the mechanisms by which Financial resources are exc…
Represents a type of loan arrangement, and like a loan they p…
typically performed with financial instruments or (securities)
Are contracts issued by businesses and government that promis…
Financial Markets
Describes the mechanisms by which Financial resources are exc…
Debt Instrument
Represents a type of loan arrangement, and like a loan they p…
16 terms
Principles of Money Banking And Financial Markets
In The United States The Money supply
Which items are generally accepted med…
Financial intermediaries are instituti…
If the price level doubles , the
(controlled by FRS) ... d. None of the above
c. paper money... d. checking accounts... e. both c & d
a. that act as middle men in transferring funds from ultimate…
a. value of the money supply falls by one half
In The United States The Money supply
(controlled by FRS) ... d. None of the above
Which items are generally accepted med…
c. paper money... d. checking accounts... e. both c & d
money banking and financial markets
financial markets
security or financial instrument
assets
bond
funds are transferred from people who have an excess of avail…
claim on the issuer's income
any financial claim or piece of property that is subject to o…
debt security that promises to make payments periodically for…
financial markets
funds are transferred from people who have an excess of avail…
security or financial instrument
claim on the issuer's income
44 terms
Money, Banking and Financial Markets
What is the present value of $500.00 t…
A credit market instrument that pays t…
If a $1000 face value coupon bond has…
Pays the bondholder the face value at…
$453.51
coupon bond.
$37.50
A discount bond
What is the present value of $500.00 t…
$453.51
A credit market instrument that pays t…
coupon bond.
15 terms
banking and financial markets review sheet
Stocks
How stocks get their value
Bonds
How bonds get their value
Share of ownership in a company.
Supply/demand the more people want the higher price.
IOU (Loan)
interest rates
Stocks
Share of ownership in a company.
How stocks get their value
Supply/demand the more people want the higher price.
68 terms
Money, banking and financial market
Barter
Fiat money
Monetary unit
Legal tender
Trading good and service between two or more without the use…
It is not backed by commodity reserve
Standard unit of currency in a country's money supply
Currency that, by government decree, must be accepted for pay…
Barter
Trading good and service between two or more without the use…
Fiat money
It is not backed by commodity reserve
116 terms
Money, Banking, and Financial Markets Ch 1-6
Financial Markets
Security
Assets
bond
markets who take excess supply (ES) of people's savings and m…
financial instrument... claim on issuer's future income or asset…
any financial claim or piece of property that is subject to o…
a dept security that promises to make periodic payments for a…
Financial Markets
markets who take excess supply (ES) of people's savings and m…
Security
financial instrument... claim on issuer's future income or asset…
35 terms
Lesson 3 Banking and financial markets
Liabilites
maturity of a debt instrument
short-term debt instrument
long-erm debt instrument
debts
the number of years/term until the instrument's... expiration date
a debt instrument with a maturity of less than one year
a debt instrument with a maturity of more than ten... years
Liabilites
debts
maturity of a debt instrument
the number of years/term until the instrument's... expiration date
27 terms
Lesson 3 Banking and financial markets
financial markets
security
assets
bond
markets in which funds are... transferred between those who have…
a claim on the issuer's future... income
any financial claim or piece of property... that is subject to o…
a debt security that promises to ... make payments periodically…
financial markets
markets in which funds are... transferred between those who have…
security
a claim on the issuer's future... income
13 terms
Money, Banking, and Financial Markets - Banking Regulations
National Bank Act
Federal Reserve Act
McFadden Act
Glass-Steagall Act
Creates the system of national banks the be chartered by the…
Creates the Federal Reserve System and gives it the responsib…
Requires national banks to abide by state branching laws; all…
Establishes the Federal Deposit Insurance Corporation; prohib…
National Bank Act
Creates the system of national banks the be chartered by the…
Federal Reserve Act
Creates the Federal Reserve System and gives it the responsib…
76 terms
Money, Banking and Financial Markets Exam 1
adverse selection
aggregate price level
asymetric information
bank
the problem that the people or firms that are most eager to m…
an average of the prices of all goods and services
A situation in which one side of the market--either buyers or…
a financial institution that accepts deposits and makes priva…
adverse selection
the problem that the people or firms that are most eager to m…
aggregate price level
an average of the prices of all goods and services
banking and financial markets review sheet
How stocks get their value
Bonds
How bonds get their value
Bull market
Supply/demand the more people want the higher price.
IOU (Loan)
interest rates
increase value
How stocks get their value
Supply/demand the more people want the higher price.
Bonds
IOU (Loan)
63 terms
Money, Central Banking, and Financial Markets
3 functions of money
M1
M2
total money supply equation
medium of exchange - means of payment... unit of account - way t…
cash... checkable depostits... traveler's checks... used directly to p…
savings... short term CDS... money market accounts... easily convertib…
initial deposit (1/rrr)
3 functions of money
medium of exchange - means of payment... unit of account - way t…
M1
cash... checkable depostits... traveler's checks... used directly to p…
Banking & Financial Markets Test Review
Money Supply
Foreclosure
Primary Market
Secondary Market
Changes in what affects the price level, inflation, and the b…
If a borrower stops paying on a loan for real estate, what ca…
If one buys shares of stock directly from a COMPANY, which ma…
If one buys share of stock from other INVESTORS, which market…
Money Supply
Changes in what affects the price level, inflation, and the b…
Foreclosure
If a borrower stops paying on a loan for real estate, what ca…
121 terms
Money, Banking, and Financial Markets Final
labor force
labor-force participation rate
unemployment rate
labor productivity
The supply of workers, which consists of people who are eithe…
The ratio of the labor force to the working age population
The number of unemployed workers as a fraction of the labor f…
A measure of productivity per worker, calculated as output di…
labor force
The supply of workers, which consists of people who are eithe…
labor-force participation rate
The ratio of the labor force to the working age population
22 terms
Money, Banking, and Financial Markets - Chapter 7
Shareholders
Stock Exchange
Stock Index
Mutual Fund
Investors who own stock in a corporation
A place where people buy or sell stocks
The average price of a collection of stocks
An investment company that pools the funds of many investors…
Shareholders
Investors who own stock in a corporation
Stock Exchange
A place where people buy or sell stocks
63 terms
Money, Central Banking, and Financial Markets
3 functions of money
M1
M2
total money supply equation
medium of exchange - means of payment... unit of account - way t…
cash... checkable depostits... traveler's checks... used directly to p…
savings... short term CDS... money market accounts... easily convertib…
initial deposit (1/rrr)
3 functions of money
medium of exchange - means of payment... unit of account - way t…
M1
cash... checkable depostits... traveler's checks... used directly to p…
29 terms
Money, Central Banking, and Financial Markets
3 functions of money
commodity money
fiat money
stock
1. Medium of Exchange- means of payment... 2. Unit of Account- w…
something used as money that also has intrinsic value
money derived by order of the government
ownership in a company
3 functions of money
1. Medium of Exchange- means of payment... 2. Unit of Account- w…
commodity money
something used as money that also has intrinsic value
39 terms
Financial Markets and the Investment Banking Process
Financial Market
Flow of Funds
Direct Transfer
Indirect Transfer through Investment B…
a system comprised of individuals and institutions, instrumen…
provides the ability to transfer income through time... -borrowi…
(flow of funds) business sells its stock directly to investor…
(flow of funds) investment banker acts as middleman and facil…
Financial Market
a system comprised of individuals and institutions, instrumen…
Flow of Funds
provides the ability to transfer income through time... -borrowi…
46 terms
Banking & Financial Markets Study Tool
The number of commercial banks has sig…
Deposits
Loans
Deposit Accounts:... • Transaction Deposi…
What has been the general trend in the number of U.S. commerc…
What are the most common sources of funds for a bank?
What are the most common uses of funds for a bank?
Be familiar with the various types of deposit accounts and th…
The number of commercial banks has sig…
What has been the general trend in the number of U.S. commerc…
Deposits
What are the most common sources of funds for a bank?
53 terms
Chapters 10 - 11 - Money and Banking - Financial Markets
barter
money
medium of exchange
unit of account
the direct exchange of one set of goods or services for another
anything that serves as a medium of exchange, a unit of accou…
anything that is used to determine value during the exchange…
a means for comparing the values of goods and services; compa…
barter
the direct exchange of one set of goods or services for another
money
anything that serves as a medium of exchange, a unit of accou…
30 terms
The Economics of Money, Banking & Financial Markets Chapter 1
Financial Markets
security
assets
bond
Markets in which funds are transferred from people who have a…
(also called financial instrument) is a claim on the issuers…
any financial claim or piece of property that is subject to o…
is a debt security that promises to make payments periodicall…
Financial Markets
Markets in which funds are transferred from people who have a…
security
(also called financial instrument) is a claim on the issuers…
10 terms
Money, Banking, and Financial Markets FINAL
The current price of gold is $1400 per…
A forward is a contract for delivery a…
If you take a long position in a July…
If you use a forward contract to hedge…
1400,1450
At a date in the future specified in the contract
accept delivery (buy)
decreased
The current price of gold is $1400 per…
1400,1450
A forward is a contract for delivery a…
At a date in the future specified in the contract
74 terms
The Economics of Money, Banking & Financial Markets Chapter 2
function of financial markets
direct finance
securities
liabilities
perform the essential economic functions of channeling funds…
borrowers borrow funds directly from lenders in financial mar…
also called financial instruments. claims on the borrowers fu…
IOUs or debts
function of financial markets
perform the essential economic functions of channeling funds…
direct finance
borrowers borrow funds directly from lenders in financial mar…
137 terms
Money, Banking, & Financial Markets Test 3
Bank Capital
Credit Risk
Depository Institution
Discount Loans
Bank assets minus bank liabilities. The net worth of the bank…
The probability that a borrower will not repay a loan
A financial institution that accepts deposits and makes loans
A loan from the Federal Reserve, usually to a commercial bank
Bank Capital
Bank assets minus bank liabilities. The net worth of the bank…
Credit Risk
The probability that a borrower will not repay a loan
22 terms
Money, Banking and Financial Markets Ch3
Future Value
Present Value
Classical Theory of Asset Prices
Dividend
value of a dollar today in terms of dollars at some future ti…
value of a future dollar in terms of todays dollars; $1 in n…
the price of an asset equals the present value of expected in…
payment from a firm to its stockholders
Future Value
value of a dollar today in terms of dollars at some future ti…
Present Value
value of a future dollar in terms of todays dollars; $1 in n…
12 terms
Money, Banking, and Financial Markets - Chapter 9
Bank Run
Contagion
Payments System
Glass-Steagall Act
A situation in which many depositors go to a bank at the same…
The spread of a bank run from one bank to another.
The mechanism by which cash, checks, and electronic payments…
The law, passed in 1933, that kept banks out of the securitie…
Bank Run
A situation in which many depositors go to a bank at the same…
Contagion
The spread of a bank run from one bank to another.
40 terms
Unit 6: Money, Banking, and Financial Markets
Money
Medium of Exchange
Barter
Unit of Account
Anything that serves as a medium of exchange, a unit of accou…
Anything that is used to determine value during the exchange…
The direct exchange of one set of goods and services for anot…
A means for comparing the values of goods and services.
Money
Anything that serves as a medium of exchange, a unit of accou…
Medium of Exchange
Anything that is used to determine value during the exchange…
17 terms
Money, Banking, and Financial Markets - Chapter 8
Bank
Asymmetric Information
Adverse Selection
Moral Hazard
A financial intermediary that accepts deposits from savers an…
A situation in which one party in a transaction knows more th…
The problem that people or firms that are worse than average…
The situation in which the existence of a contract changes th…
Bank
A financial intermediary that accepts deposits from savers an…
Asymmetric Information
A situation in which one party in a transaction knows more th…
50 terms
Money, Banking, and Financial Markets Midterm 2
Risk Structure of Interest Rates
Term Structure of Interest Rates
Default
Default-Free Bonds
relationship of bonds with same term to maturity but differen…
relationship of bonds with different terms to maturity but sa…
occurs when the issuer of the bond is unable or unwilling to…
no default risk... ex: U.S. Treasury Bonds
Risk Structure of Interest Rates
relationship of bonds with same term to maturity but differen…
Term Structure of Interest Rates
relationship of bonds with different terms to maturity but sa…
76 terms
Money, Banking and Financial Markets Exam 1
adverse selection
aggregate price level
asymetric information
bank
the problem that the people or firms that are most eager to m…
an average of the prices of all goods and services
A situation in which one side of the market--either buyers or…
a financial institution that accepts deposits and makes priva…
adverse selection
the problem that the people or firms that are most eager to m…
aggregate price level
an average of the prices of all goods and services
23 terms
CH1: Money, Banking, and Financial Markets
Money (money suppply)
Central bank
Fiscal policy
Monetary policy
currency and coins in circulation, checking accounts in depos…
nation's monetary authority that conducts monetary policy; re…
government, taxation
influences availability of credit, level of interest rate, mo…
Money (money suppply)
currency and coins in circulation, checking accounts in depos…
Central bank
nation's monetary authority that conducts monetary policy; re…
49 terms
Banking & Financial Market Test Review
Money supply
Foreclosure
Primary Market
Secondary Market
Change in what affect the price level, inflation, & the busin…
If a borrower stops paying on a loan for real estate, what ca…
If one buys shares of stock directly from a company, which ma…
Is one buys shares of stock from other investors, which marke…
Money supply
Change in what affect the price level, inflation, & the busin…
Foreclosure
If a borrower stops paying on a loan for real estate, what ca…
27 terms
Money and Banking Chapter 1: Why study money, banking, and financial markets?
Financial markets
Security (financial instrument)
Asset
Bond
Markets in which funds are transferred from people who have a…
A claim on the issuer's future income or assets
Any financial claim or piece of property that is subject to o…
A debt security that promises to make payments periodically f…
Financial markets
Markets in which funds are transferred from people who have a…
Security (financial instrument)
A claim on the issuer's future income or assets
47 terms
Economics Topic 6: Money, Banking, and Financial Markets
Monetary policy
Check clearing
Money
Medium of exchange
The actions that the Federal Reserve System takes to influenc…
The process by which banks record whose account gives up mone…
Anything that serves as a medium of exchange, a unit of accou…
Anything that is used to determine value during the exchange…
Monetary policy
The actions that the Federal Reserve System takes to influenc…
Check clearing
The process by which banks record whose account gives up mone…
78 terms
Economics - Topic 6 - Money, Banking, and Financial Markets
money
medium of exchange
barter
unit of account
anything that serves as a medium of exchange, a unit of accou…
anything that is used to determine value during the exchange…
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 accou…
medium of exchange
anything that is used to determine value during the exchange…
31 terms
Financial Markets & Institutions-Banking, bank regulation, banking industry structure
Banking — Balance-Sheet Activities....
Liabilities & equity —
• Assets —
• Basic banking = balance-sheet activi…
...
-checkable deposits-2%... -non transaction deposits-69%... -->savin…
-Reserves+cash items-16%... -securities... -->U.S.-14%... --> state lo…
§ Deposits/withdrawals, checking, lending — Effects on reserv…
Banking — Balance-Sheet Activities....
...
Liabilities & equity —
-checkable deposits-2%... -non transaction deposits-69%... -->savin…
33 terms
Why study money, banking, and financial markets?
financial markets
security
assets
bond
markets in which funds are transferred from people who have a…
e.g. financial instrument; a claim on the issuer's future inc…
any financial claim or piece of property that is subject to o…
a debt security that promises to make periodic payments for a…
financial markets
markets in which funds are transferred from people who have a…
security
e.g. financial instrument; a claim on the issuer's future inc…
20 terms
Principles Of Money Banking and Financial Markets chapter 11
What is not a defining characteristic…
Portfolio diversification is sometimes…
An informational advantage held by one…
In financial markets it is safe to ass…
A) Equilibrium pices
C) don't put all your eggs in one basket
C) Asymmetric information
A) the borrower has more information about the transaction th…
What is not a defining characteristic…
A) Equilibrium pices
Portfolio diversification is sometimes…
C) don't put all your eggs in one basket
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