financial systems

what is currency

medium of exchange for goods and services

what are stocks

part ownership of company in small fraction

what does a call expect

increase in value

what does a put expect?

decrease in value

what is a loan?

bank letting people borrow your money

what is the financial system structure

banking & credit, securities & commodities, insurance company, and regulatory & oversight

what is banking & credit

depository credit institutions, banks and credit unions

what is securities & commodities

brokers and exchanges, for investors

what is insurance

lowers risk against financial loss

what is regulatory & oversight

agency that establishes and enforcees rules for marketplace

what is a payment transaction

transactions related to the transfer of money between people ad business

what is a security transaction?

buying, selling, and transferring ownership of finance

what is derivatives transactions

contracts based on underlying finance for risk management

what is interbank transactions

financial transactions between banks and other financial companies.

what is foreign exchange transactions

spot transactions, forward currency contracts, and currency swaps

what are loan and credit transactions

transactions involving borrowing and lending money

what is government transactions

treasury transactions, tax payments & refunds, and government benefits

what is cryptocurrency

digital or virtual currency

crypto uses ___ for security

cryptography

crypto operates on a ___ network

decentralized