Flashcards: Financial Markets and Institutions Overview — 10 cartões

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.