Study sets matching "money banking interest"

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Study sets matching "money banking interest"

Interest Rates, Money, Banking
medium of exchange, unit of account, s…
currency, checkable deposits
checkable deposit
bank
Three functions of money.
Two major components of M1.
All deposits in commercial banks or savings institutions on w…
Primary depository institution that accepts deposits, keeps t…
medium of exchange, unit of account, s…
Three functions of money.
currency, checkable deposits
Two major components of M1.
Banking & Finance-Money and Interest
commodity money
discount
fiat money
federal funds rate
money based on some item of value, such as gold or precious s…
the rate the federal reserve sets and charges for loans to me…
money that is deemed legal tender by the government, not back…
the amount of interest charged for short-term, interbank loans
commodity money
money based on some item of value, such as gold or precious s…
discount
the rate the federal reserve sets and charges for loans to me…
Banking & Finance-Money and Interest
MZM
aggregate measures
commodity money
discount
a measure of annual change in the money supply
tools used to estimate the size of money supply
money based on some item of value, such as gold or precious s…
the rate the federal reserve sets and charges for loans to me…
MZM
a measure of annual change in the money supply
aggregate measures
tools used to estimate the size of money supply
Banking & Finance-Money and Interest
commodity money
discount
fiat money
federal funds rate
money based on some item of value, such as gold or precious s…
the rate the federal reserve sets and charges for loans to me…
money that is deemed legal tender by the government, not back…
the amount of interest charged for short-term, interbank loans
commodity money
money based on some item of value, such as gold or precious s…
discount
the rate the federal reserve sets and charges for loans to me…
93 terms
Banking & Finance-Money and Interest
commodity money
discount
fiat money
federal funds rate
money based on some item of value, such as gold or precious s…
the rate the federal reserve sets and charges for loans to me…
money that is deemed legal tender by the government, not back…
the amount of interest charged for short-term, interbank loans
commodity money
money based on some item of value, such as gold or precious s…
discount
the rate the federal reserve sets and charges for loans to me…
23 terms
Money and Banking : Measuring Interest Rates
The concept of _____ is based on the c…
The present value of an expected futur…
With an interest rate of 6 percent, th…
What is the present value of $500.00 t…
Present Value
Falls
$94
$453.51
The concept of _____ is based on the c…
Present Value
The present value of an expected futur…
Falls
macro - money, banking and interest rates
what is money?
what is the problem with bartering?
what is the medium of exchange?
what is the unit of account?
it facilitates exchange and reduces the need to barter (tradi…
requires a double coincidence of wants ... e.g. offering someone…
facilitates transactions between buyers and sellers
prices, assets, liabilities and debts are expressed in moneta…
what is money?
it facilitates exchange and reduces the need to barter (tradi…
what is the problem with bartering?
requires a double coincidence of wants ... e.g. offering someone…
25 terms
Banking & Finance--Chapter 3--Money and Interest
aggregate measures
MZM
commodity money
discount
tools used to estimate the size of money supply
a measure of annual change in the money supply
money based on some item of value, such as gold or precious s…
the rate the federal reserve sets and charges for loans to me…
aggregate measures
tools used to estimate the size of money supply
MZM
a measure of annual change in the money supply
14 terms
Money, Banking and Interest Rates - 8a
money
medium exchange unit account store val…
inflation
multiple deposit creation
Any asset that is widely accepted for purposes of exchange i.…
Money functions: ... of ..., ... of ..., a ... of ... and sta…
... erodes the value of money
When the CB increases reserves by £1 then the deposits in the…
money
Any asset that is widely accepted for purposes of exchange i.…
medium exchange unit account store val…
Money functions: ... of ..., ... of ..., a ... of ... and sta…
22 terms
Money and Banking: Chapter Five (The Behavior of Interest Rates)
What is expected return?
What is risk?
What is liquidity?
What are the four components of the Th…
the return expected over the next period on one asset relativ…
the degree of uncertainty associated with the return on one a…
the ease and speed with which an asset can be turned into cas…
1. The quantity demanded of an asset is positively related to…
What is expected return?
the return expected over the next period on one asset relativ…
What is risk?
the degree of uncertainty associated with the return on one a…
37 terms
Money and Banking: Chapter Four (The Meaning of Interest Rates)
What is the present value?
Why is a dollar paid to you one year f…
What is the simple present value equat…
Cannot compare payments scheduled in _…
a dollar paid to you one year from now is less valuable than…
a dollar deposited today can earn interest and become $1 x (1…
PV = CF/(1+i)^n
different points
What is the present value?
a dollar paid to you one year from now is less valuable than…
Why is a dollar paid to you one year f…
a dollar deposited today can earn interest and become $1 x (1…
20 terms
Interest / the Cost of Money / banking- Economics practice questions
To determine the time value of deposit…
Why might rising interest rates depres…
Which investment would you choose toda…
Which of the following is the federal…
answer is:... b) the rate of inflation
answer is:... b) rising interest rates can result in lower busin…
answer is:... c) short term savings instruments
answer is:... c) Truth in Lending Act
To determine the time value of deposit…
answer is:... b) the rate of inflation
Why might rising interest rates depres…
answer is:... b) rising interest rates can result in lower busin…
Money, Banking, Bonds, and Interest (Macro Part 1)
3 purposes for money:
M1 (most basic definition of money)
Demand for Md
Speculative Demand for Money
-unit of exchange... -store of value... -unit of account
currency (paper) + demand deposits (checking account)... most l…
-Higher Income = Higher Md ... -Precautionary Demand for Money…
Good time to BUY bonds= Low Speculative Demand for Money... Goo…
3 purposes for money:
-unit of exchange... -store of value... -unit of account
M1 (most basic definition of money)
currency (paper) + demand deposits (checking account)... most l…
39 terms
Money & Banking Chapter 6 Real Interest Rates
nominal interest rates
real interest rates
expected real interest rate
realized real interest rate
The amount of interest paid on a debt security in nominal (do…
The nominal interest rate adjusted for expected or actual inf…
The nominal interest rate adjusted for expected inflation; al…
The nominal interest rate adjusted for actual inflation; also…
nominal interest rates
The amount of interest paid on a debt security in nominal (do…
real interest rates
The nominal interest rate adjusted for expected or actual inf…
Topic 3: Money, Banking and Interest Rates
Barter economy
Double coincidence of wants
Unit of account
Store of value
Where these is no money, and individuals trade by exchanging…
In a barter economy this is needed without money, and the fir…
The unit in which prices are quoted i.e. in monetary terms £
Something that can be used to make future purchases e.g. money.
Barter economy
Where these is no money, and individuals trade by exchanging…
Double coincidence of wants
In a barter economy this is needed without money, and the fir…
13 terms
Chapter 11: Banking, Money and Interest Rates
Medium of Exchange
Financial Intermediaries
Liquidity
Liquidity Ratio
something that is acceptable in exchange for goods and services
the general name for financial institutions (e.g. banks, cred…
the ease by which an asset can be converted into cash without…
the proportion of a bank's total assets held in liquid form
Medium of Exchange
something that is acceptable in exchange for goods and services
Financial Intermediaries
the general name for financial institutions (e.g. banks, cred…
30 terms
Money & Banking Chapter 5 The Structure of Interest Rates
securitization
on-the-run security
off-the-run security
basis point
the process by which financial intermediaries that own assets…
the U.S. Treasury security (for a given time to maturity) tha…
a U.S. Treasury security that is not the most recently issued.
one-hundredth of a percentage point.
securitization
the process by which financial intermediaries that own assets…
on-the-run security
the U.S. Treasury security (for a given time to maturity) tha…
The Economics of Money, Banking, and Financial Markets Ch. 4: The Meaning of Interest Rates
cash flows
consol or perptuity
coupon bond
coupon rate
Cash payments to the holder of a security
A perpetual bond with no maturity date and no repayment of pr…
A credit market instrument that pays the owner a fixed intere…
The dollar amount of the yearly coupon payment expressed as a…
cash flows
Cash payments to the holder of a security
consol or perptuity
A perpetual bond with no maturity date and no repayment of pr…
28 terms
Money and Banking: Chapter Six (The Risk and Term Structure of Interest Rates)
Why do bonds with the same maturity ha…
What is default risk?
What type of bond is considered defaul…
What is the risk premium?
- default risk... - liquidity... - tax considerations
probability that the issuer of the bond is unable or unwillin…
US Treasury Bonds
the spread between the interest rates on bonds with default r…
Why do bonds with the same maturity ha…
- default risk... - liquidity... - tax considerations
What is default risk?
probability that the issuer of the bond is unable or unwillin…
Money and Banking
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…
20 terms
Money and Banking
currency
coins
bill
credit card
currency
coins
32 terms
Money and Banking
money
medium of exchange
barter
standard of value
anything that people will accept in exchange for goods and se…
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 se…
medium of exchange
means through which goods and services can be exchanged
Money and Banking
money
medium of exchange
barter
currency
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
Coins and paper bills used as money
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…
61 terms
Money and Banking
Functions of Money
Gold
Store of Value
Medium of Exchange
store of value.... saving money.
changes all the time.
is best done by saving the money.... If you want to store your v…
Purchasing something.
Functions of Money
store of value.... saving money.
Gold
changes all the time.
26 terms
Money and Banking (12): Measuring interest Rates and Rates of Return
Because economists believe markets are…
What is the equation for current yield?
what is Yield to maturity?
What does the time value of money state?
one cannot consistently outperform the stock market
Annual interest/current price... this tells investers what you w…
it is the anticipated return if an individual holds a bond un…
That a dollar today is always worth more than a dollar tomorr…
Because economists believe markets are…
one cannot consistently outperform the stock market
What is the equation for current yield?
Annual interest/current price... this tells investers what you w…
32 terms
Money and Banking
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…
72 terms
Money & Banking
Two reasons why bond prices and intere…
Define Yield to maturity
rate of return equation
What happens to Md when prices fall?
1) when interest rates go down, cash flow increases 2) decrea…
present value of cash flows received from debt with value today
ROR=PV-P/P PV=P/IR
When prices decrease, money demanded decrease
Two reasons why bond prices and intere…
1) when interest rates go down, cash flow increases 2) decrea…
Define Yield to maturity
present value of cash flows received from debt with value today
30 terms
Money and Banking
pieniądze
bankomat
waluta
karta przedpłacona
money
cash point
currency
prepaid card
pieniądze
money
bankomat
cash point
32 terms
Money and Banking
Clearinghouse
Dealer
Value-Based Investor/Central Bank
interest rate
a mutual organization that serves as the counterparty for eve…
an individual entity that supplies market liquidity by quotin…
central bank acts as a kind of value-based investor when it c…
the price of money tomorrow in terms of money today
Clearinghouse
a mutual organization that serves as the counterparty for eve…
Dealer
an individual entity that supplies market liquidity by quotin…
Money and Banking
money
barter
store of value
currency
anything that serves as a medium of exchange, a unit of accou…
the direct exchange of one set of goods or services for another
Something that keeps its value if it is stored rather than used
Coins and paper bills used as money
money
anything that serves as a medium of exchange, a unit of accou…
barter
the direct exchange of one set of goods or services for another
12 terms
Money and Banking
borrow
credit
interest
loan
to receive and use something that is not yours and then retur…
promise of payment at a future time in return for goods/servi…
payments made for the use of money
money given to a person that has to be paid back, often with…
borrow
to receive and use something that is not yours and then retur…
credit
promise of payment at a future time in return for goods/servi…
10 terms
Banking and Interest
Interest
Withdrawal
Deposit
Balance
Money earned on a savings account
Money subtracted from an account
Money added to an account
The amount in your account
Interest
Money earned on a savings account
Withdrawal
Money subtracted from an account
10 terms
Money & Banking
loan
interest
current account
deposit
money lent: a sum of money that is expected to be paid back
money earned from investments, or money paid at a particular…
account used for day-to-day banking
put money into a bank account
loan
money lent: a sum of money that is expected to be paid back
interest
money earned from investments, or money paid at a particular…
65 terms
Money and Banking
A
B
A
D
The First Bank of the United States... A) was disbanded in 1811…
The Second Bank of the United States... A) was disbanded in 1811…
The public's fear of centralized power and distrust of moneye…
The financial panic of 1907 resulted in such widespread bank…
A
The First Bank of the United States... A) was disbanded in 1811…
B
The Second Bank of the United States... A) was disbanded in 1811…
Money and Banking
Financial markets
security
bond
interest rate
markets in which funds are transferred from people and Firms…
(financial instrument) is a claim on the issuer's future inco…
a debt security that promises to make payments periodically f…
the cost of borrowing or the price paid for the rental of funds
Financial markets
markets in which funds are transferred from people and Firms…
security
(financial instrument) is a claim on the issuer's future inco…
Money and Banking
Financial markets
security
assets
bond
markets in which funds are transferred from people who have a…
(financial investment) 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 f…
Financial markets
markets in which funds are transferred from people who have a…
security
(financial investment) a claim on the issuer's future income…
Money & Banking
fiat money
liquidity
money supply
member bank
money that has value because the government has ordered that…
the ability to be used as, or directly converted to, cash
all the money available in the United States economy
bank belonging to the Federal Reserve System
fiat money
money that has value because the government has ordered that…
liquidity
the ability to be used as, or directly converted to, cash
70 terms
Money and Banking
Financial Institutions
underlying
Derivative
Foreign exchange market is
A written legal obligation of one party to transfer something…
securities whose value depends on the issuers financial condi…
value is derived from the behavior of underlying securities (…
where the currency of one country is converted into the curre…
Financial Institutions
A written legal obligation of one party to transfer something…
underlying
securities whose value depends on the issuers financial condi…
Money & Banking
Money
Medium of Exchange
Barter
Store of Value
anything used as medium of exchange, unit of accounting, & st…
seller will accept it in exchange for a good or service
trading of goods & services for other goods & services
keep purchasing power for later use
Money
anything used as medium of exchange, unit of accounting, & st…
Medium of Exchange
seller will accept it in exchange for a good or service
10 terms
Money & Banking
loan
interest
current account
deposit
money lent: a sum of money that is expected to be paid back
money earned from investments, or money paid at a particular…
account used for day-to-day banking
put money into a bank account
loan
money lent: a sum of money that is expected to be paid back
interest
money earned from investments, or money paid at a particular…
27 terms
Money and Banking
M1
M2
Special properties of money
Total return asset
measure of money that includes currency, travelers checks, an…
A measure of money that adds M1: money market deposit account…
1. Labor cannot be employed to produce more money... 2. No good…
q-c+l
M1
measure of money that includes currency, travelers checks, an…
M2
A measure of money that adds M1: money market deposit account…
21 terms
banking and money
cash
coin
bills
check
Cash is money.
These are coins.
This is a $1 bill.
Be careful taking checks from people you don't know.
cash
Cash is money.
coin
These are coins.
18 terms
Money&Banking
Function of Financial Markets
Direct finance
Structure of Financial Markets
Debt Markets
Perform the essential function of channeling funds from econo…
borrowers borrow funds directly from lenders in financial mar…
-Debt and Equity Markets... -Primary and Secondary Markets... -Exch…
concerned with financing through issuing debt instrument.
Function of Financial Markets
Perform the essential function of channeling funds from econo…
Direct finance
borrowers borrow funds directly from lenders in financial mar…
32 terms
Money and Banking Chapter 3
Money market
Secondary market
Primary market
Capital market
A financial market in which only short-term debt instruments​…
A financial market in which securities that have been previou…
A financial market in which new issues of a​ security, such a…
A market in which​ longer-term debt​ (generally those with or…
Money market
A financial market in which only short-term debt instruments​…
Secondary market
A financial market in which securities that have been previou…
16 terms
Money and Banking???
fiscal policy
central bankers work to reduce the vol…
job of the central bank
central bank independence
determines the budget by congress and president
1) low and stable inflation... 2) high and stable real growth/em…
improve general economic welfare by managing and reducing sys…
central bank should be free of political pressure, make decis…
fiscal policy
determines the budget by congress and president
central bankers work to reduce the vol…
1) low and stable inflation... 2) high and stable real growth/em…
25 terms
Money and Banking
money
medium of exchange
barter
unit of accounting
anything customarily used as a medium of exchange, a unit of…
money that a seller will accept in exchange for a good or ser…
trade; exchange of goods or services for other goods or servi…
use of money as a yardstick to compare the values of goods an…
money
anything customarily used as a medium of exchange, a unit of…
medium of exchange
money that a seller will accept in exchange for a good or ser…
61 terms
Money and Banking
Functions of Money
Gold
Store of Value
Medium of Exchange
store of value.... saving money.
changes all the time.
is best done by saving the money.... If you want to store your…
Purchasing something.
Functions of Money
store of value.... saving money.
Gold
changes all the time.
5 terms
Money and Banking
Savings Account
ATM
Check
Mobile Banking
Account that you save for a raining day that earns interest
Computer used by bank customers to manage money and dispense…
Paper forms that people use to transfer money from one place…
Gives you the convenience of using a device to bank
Savings Account
Account that you save for a raining day that earns interest
ATM
Computer used by bank customers to manage money and dispense…
13 terms
Money and Banking
SO stands for
Identify two legal requirements for se…
DD stands for
A Current Account is used for
Standing Order
Proof of Address and Proof of Identity
Direct Debit
Everyday use
SO stands for
Standing Order
Identify two legal requirements for se…
Proof of Address and Proof of Identity
21 terms
Money and Banking
Barter
Medium of exchange
Store of value
Unit of account
exchange goods without money
an item that buyers give to sellers when they want to purchas…
an item that people can use to transfer purchasing power from…
a measure used to set prices and make economic calculations
Barter
exchange goods without money
Medium of exchange
an item that buyers give to sellers when they want to purchas…
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