Macro Topic 4: Financial Markets
Studied by 0 people
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/7
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
8 Terms
Functions of Money
Medium of Exchange
Store of Value
Unit of Account
Standard of Deferred Payment
Characteristics of Money
Acceptable
Portable
Durable
Divisible
Limited in Supply
Difficult to Forge/Counterfeit
Characteristics of Commercial Banks
Accept Savings
Lending
Act as Financial Intermediaries
Allow payments from one agent to another
Advice
Features of Investment Banks
Prop Trading
Market Making
Mergers and Acquisitions
New Issues
Underwriting
Assets on a Commercial Bank Balance Sheet
Cash
Reserves at the BoE
Interbank Lending
Short Term Investments
Advancements
Fixed Assets
Liabilities on a Commercial Bank Balance Sheet
Deposits
Short Term Borrowing
Long Term Borrowing
Shareholder’s Funds
Retained Profit (Reserves)
Objectives of Commercial Banks
Profit Maximisation
Liquidity (to avoid bank run)
Security (manage risk and avoid insolvency)
Role of The Central Bank
To Implement Monetary Policy
Act as a banker to the government
Act as a banker to the banks
Regulate the Financial System
Note 
Flashcards (84)