Money — functions?
Exchange, store of value, unit of account
Money multiplier — formula?
(1 + c)/(r + c)
Basel III — purpose?
Set capital and liquidity standards for banks
Money functions?
Medium of exchange, store of value, unit of account.
Money evolution?
Barter, commodities, precious metals, fiat, electronic.
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.
Answer 10 questions on Financial Markets and Institutions Overview.
1. What is the primary function of money in financial markets?
2. Which component is included in the M2 money aggregate but not in M1?
Go over the full study guide for Financial Markets and Institutions Overview.
Read the study guide →Upload your class notes and Revizly writes your flashcards in about a minute.
Flashcard maker