Flashcards : Financial Markets and Institutions Overview — 10 cartes

Exchange, store of value, unit of account

Medium of exchange, store of value, unit of account.

(1 + c)/(r + c)

Barter, commodities, precious metals, fiat, electronic.

Set capital and liquidity standards for banks

Currency, deposits, financial assets.

M1: cash + overnight deposits; M2: M1 + short-term deposits.

Money creation depends on reserve ratio, cash preference.

Capital (CET1, Tier 1, Tier 2) and liquidity (LCR, NSFR).

Bonds, money market securities; valued via discounted cash flows.