Flashcards: Financial Institutions and Market Dynamics — 9 cartões

Todos os cartões

1Pergunta

Financial institutions — role?

Resposta

Intermediaries connecting savers and borrowers.

2Pergunta

Intermediation — definition?

Resposta

Channeling funds from savers to borrowers.

3Pergunta

Types of financial institutions — examples?

Resposta

Commercial banks, investment banks, insurance companies, investment funds, pension funds.

4Pergunta

Facilitating Payments — role?

Resposta

Enabling transactions for goods and services.

5Pergunta

Risk Management — purpose?

Resposta

Mitigating credit, interest, liquidity risks.

6Pergunta

Financial Innovation — example?

Resposta

Creating new financial products and services.

7Pergunta

Asset Transformation — meaning?

Resposta

Converting short-term liabilities into long-term assets.

8Pergunta

Commercial Banks — services?

Resposta

Accept deposits, give loans, provide payment services.

9Pergunta

Investment Banks — focus?

Resposta

Capital raising, securities underwriting, M&A advisory.

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1. What is the primary purpose of financial institutions within the economy?

2. What is the primary function of commercial banks within the financial system?

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