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47 Cards in this Set
- Front
- Back
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Tobacco leaves were used as what? |
Fiat money |
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LETS |
Local Exchange Trading System |
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Reserve requirement |
The current amount that a bank must have on hand to cover anticipated withdrawals |
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GDP |
Gross Domestic Product |
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IMF |
International Monetary Fund |
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SEC |
Securities and Exchange Commission |
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FOMC |
Federal Open Market Committee |
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Securitization |
Packaging pools of loans or receivables for redistribution to investors |
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IPO |
Initial Public Offering |
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Mutual Funds |
Pooled funds which are professionally managed to optimize returns on a flexible investment portfolio |
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Inflation |
Erosion of the value of money over time |
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CPI |
Consumer Price Index |
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Present value of money |
The amount of money you have now in comparison to how much you will need for a future expenditure |
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Future value formula |
FV = P* (1+i)^n |
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Future value of money |
The future amount of money you will have based on current interest rates over a set period of time |
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Spread |
The difference between the Fed Funds rate and retail loan rates |
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Fed funds rates |
Determine the rate at which banks lend money to each other |
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Direct Financing |
Borrowing from one source or individual |
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Indirect financing |
Borrowing from a bank who acts as an agent for the depositors of the bank |
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A run on a bank is when |
Depositors panic |
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Offshore banking |
Usually operates with the main intent of providing banking secrecy and less regulatory restrictions |
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Leveraged buyouts |
LBOs |
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CDs |
Certificates of Deposit |
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Charter |
A formal document that governs the manner in which the bank is regulated and operated |
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NOW |
Negotiable Order of Withdrawal |
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IRA |
Individual Retirement Accounts |
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Escrow account |
Giving money to a neutral third party, generally involved in real estate transactions |
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Sub-prime lender lends higher or lower than prime? |
Higher rates than prime |
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Thin market |
Low demand |
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Yuan |
International Chinese currency |
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Balance of Payments |
BOP |
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World Trade Orgranization |
WTO |
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BIS |
Banks for International Settlements |
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G-8 |
Informal group made up of Canada, France, Germany, Italy, Russia, UK, and the US |
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Tariffs |
Taxes on imports |
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Subsidy |
Government support for an industry |
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Quotas |
Limit on amount of specific import item |
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Trade embargo |
Ban on trade for political reasons |
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Dumping |
Sale of goods below market value |
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Trade agreement |
Establishes rules of trade; generally favorable. |
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MFN Status |
Nation receives all trade advantages other nations receive |
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Balance of trade |
Difference between value of imports and exports; trade deficit/surplus |
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Free Trade |
Goods flow without government interference |
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Exchange Rate |
Value of one currency in terms of another |
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Which European country does not use the Euro? |
The United Kingdom (UK) |
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Loan collateral |
Something of value (property, etc.) to secure a loan |
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When inventory is high, prices are more likely to rise or drop? |
Drop |
