Finanace - Colloqium

what is money?

generally accepted; recognized and eased in transactions of goods; trade takes on various forms (phisical cash or vritual currencies

types of money

commodity money, commodity-backed money, fiat money

commodity money

objects that have value in themselves and that are also used as money, e.g.: gold or silver coins

fiat money

a medium of exchange whose value derives entirely from its official status as a means of payment; not backed up

representative money

bank notes that exchange for a specific commodity, such as gold

money creation

the process by which money enters circulation; introducing new money into economy (printing banknotes or creating digital money)

how have banks develop?

from serving as storage for valuable items to facilities that offer loans and other financial services

history of money

Barter- Commodity Money- Banknote- Coins- Fiat Money- Central bank money- Bank money- "Plastic" money- Electronic money

functions of money

medium of exchange (circulation); unit of account (thesaural); store of value (payment); means of payment (accounting)

tight essence

vista and prompt deposits; keep bank accounts; granting and confirming banks gurantees; issuing bank securities; carry out bank cash settlements; issuing electric money

large essence

granting cash loans; check and bill exchange; issue payment cards; timely financial operations; purchase and sell cash recievables; safekeeping of securities; perform foreign exchange, commisions related issuse securities, activities for the bank seperate acts of granting credits

what is the definition of finance?

management of money

types of finance

public, private (corporate, household)

public finance

the study of the role of the government in the economy

private finance

management of all finance other than public finance

corporate finance

the finance function within a business; one of the three main areas of finance.

household finance

the study of how a household and the people in it develop the cash flows necessary to support operations and provide for the well-being of its members

equity intruments

legislator of all kinds of contracts; they give a rise to the entity's property, saying after that creditors are satisfied and secured

securities

stocks, bonds, and mutual funds representing secured, or asset-based, claims by investors against issuers

warrants

long-term options to buy a stated number of shares of common stock at a specified price

bonds

paper notes promising to repay money after a certain length of time with interest

covered bonds

similar to asset-backed securities, but the underlying assets remain on the balance sheet of the issuing corporation

derivative

unoriginal; taken from something already existing

undelying instruments of derivatives

exchange rates; stock indices; commodity prices; price indices; atmospheric factors

futures

contracts to buy or sell at a specific date in the future at a price specified today

open market operations

the buying and selling of government securities to alter the supply of money

required reserves

reserves that a bank is legally required to hold, based on its checking account deposits; in Polnad is 3,5

interventionism

a strand of American foreign policy that was visible by the end of the 19th century; it included "gunboat diplomacy" and other forms of military involvement by the United States in various parts of the world.

new inflation conservatism

refers to political practice of intervention (pratice of goverments to interfere in political affairs of other countries)

sectroial financial market supervision of european union

european banking authority (EBA); european insurance and occupational pensions authority (EIOPA); european securities and market authority (ESMA)

european sysmetic board

publishes reports on potencial sysmetic risks that arise in the financial sectors