Summary econ2411 money and banking university of connecticut 2025
,Summary econ2411 money and banking university of connecticut 2025
, Summary econ2411 money and banking university of connecticut 2025
Money and Banking Midterm Exam Summary
Chapter 1- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The bond and stock markets
The structure of the financial system
Business cycles, money supply, interest rates and inflation
Fiscal and Monetary Policies
Chapter 2- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The structure of the various financial markets
The various financial market instruments
The function of financial intermediaries
Types of financial intermediaries
Regulation in the financial system
Chapter 3- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The definition, meaning, functions and forms of money
M1 and M2
Chapter 4- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The concept of Present value and the simple calculation
Types of credit market instruments
Difference between real interest rates and returns
Difference between real and nominal interest rates
Chapter 5- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The determinants of asset demand
The Bond market equilibrium and how shifts in demand &supply affect it
Chapter 6- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
How risk, liquidity and income tax affects interest rates
How term structure affects interest rates…The various theories
Chapter 7- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
How is the price of common stock computed and set? One period valuation
Theory of Rational Expectations and the implications
Chapter 8- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The 8 basic facts about financial structure and the various reasons for each.
Chapter 9- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The various financial crisis and its stages both domestic and overseas
Chapter 10- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the
text Bank balance sheet part
The various principles of bank management and their application
, Summary econ2411 money and banking university of connecticut 2025
Chapter 1 - Financial markets
Definitions:
Financial markets- markets in which funds are transferred from people with an excess of
available funds to those with a shortage
Security- claim on the issuer’s future income
Asset- financial claim or piece of property that is subject to ownership
Bond- debt security that promises to make payments periodically for a specific period of time
Interest rate- cost of borrowing, or the price paid for the rental of funds
Common stock- represents a share of ownership in a corporation
Financial intermediaries- borrow funds from people who saved and in turn make loans to
others
Financial crises- major disruption in financial markets characterized by sharp declines
in asset prices and the failures of financial and non-financial firms
Banks- financial institutions that accept deposits and make
loans E-finance- ability to deliver financial services
electronically
Aggregate price level- average price of goods and services in an
economy Inflation- continual increase in price level
Inflation rate- rate of change of the price level
Monetary policy- management of money and interest rates
Central bank- responsible for the conduct of a nations monetary policy
Federal Reserve System- United states central bank
Fiscal policy- decisions about govt. spending and taxation
Budget deficit- excess of govt. expenditures over tax revenues
Budget surplus- tax revenues exceed govt. spending
GDP- measure of aggregate output
The Bond and Stock Markets
,Summary econ2411 money and banking university of connecticut 2025
, Summary econ2411 money and banking university of connecticut 2025
Money and Banking Midterm Exam Summary
Chapter 1- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The bond and stock markets
The structure of the financial system
Business cycles, money supply, interest rates and inflation
Fiscal and Monetary Policies
Chapter 2- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The structure of the various financial markets
The various financial market instruments
The function of financial intermediaries
Types of financial intermediaries
Regulation in the financial system
Chapter 3- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The definition, meaning, functions and forms of money
M1 and M2
Chapter 4- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The concept of Present value and the simple calculation
Types of credit market instruments
Difference between real interest rates and returns
Difference between real and nominal interest rates
Chapter 5- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The determinants of asset demand
The Bond market equilibrium and how shifts in demand &supply affect it
Chapter 6- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
How risk, liquidity and income tax affects interest rates
How term structure affects interest rates…The various theories
Chapter 7- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
How is the price of common stock computed and set? One period valuation
Theory of Rational Expectations and the implications
Chapter 8- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The 8 basic facts about financial structure and the various reasons for each.
Chapter 9- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the text
The various financial crisis and its stages both domestic and overseas
Chapter 10- Review all highlighted definitions in the text
Review all Tables, Figures and applications in the
text Bank balance sheet part
The various principles of bank management and their application
, Summary econ2411 money and banking university of connecticut 2025
Chapter 1 - Financial markets
Definitions:
Financial markets- markets in which funds are transferred from people with an excess of
available funds to those with a shortage
Security- claim on the issuer’s future income
Asset- financial claim or piece of property that is subject to ownership
Bond- debt security that promises to make payments periodically for a specific period of time
Interest rate- cost of borrowing, or the price paid for the rental of funds
Common stock- represents a share of ownership in a corporation
Financial intermediaries- borrow funds from people who saved and in turn make loans to
others
Financial crises- major disruption in financial markets characterized by sharp declines
in asset prices and the failures of financial and non-financial firms
Banks- financial institutions that accept deposits and make
loans E-finance- ability to deliver financial services
electronically
Aggregate price level- average price of goods and services in an
economy Inflation- continual increase in price level
Inflation rate- rate of change of the price level
Monetary policy- management of money and interest rates
Central bank- responsible for the conduct of a nations monetary policy
Federal Reserve System- United states central bank
Fiscal policy- decisions about govt. spending and taxation
Budget deficit- excess of govt. expenditures over tax revenues
Budget surplus- tax revenues exceed govt. spending
GDP- measure of aggregate output
The Bond and Stock Markets
