Money — functions?
Exchange, store of value, unit of account
Money functions?
Medium of exchange, store of value, unit of account.
Money multiplier — formula?
(1 + c)/(r + c)
Money evolution?
Barter, commodities, precious metals, fiat, electronic.
Basel III — purpose?
Set capital and liquidity standards for banks
Money supply components?
Currency, deposits, financial assets.
M1 vs M2?
M1: cash + overnight deposits; M2: M1 + short-term deposits.
Fractional reserve banking?
Money creation depends on reserve ratio, cash preference.
Basel III — requirements?
Capital (CET1, Tier 1, Tier 2) and liquidity (LCR, NSFR).
Debt instruments?
Bonds, money market securities; valued via discounted cash flows.
Test your knowledge with 10 questions on Financial Markets and Institutions Overview.
1. What is the primary function of money in financial markets?
2. Which component is NOT part of the traditional money supply aggregates?
Review the complete course in the revision sheet for Financial Markets and Institutions Overview.
See revision sheet →Import your course and AI generates flashcards in 30 seconds.
Flashcard generator