Chapter 1 - Introduction Flashcards
Financial Institutions:
Financial Institutions: Institutions which engage in activities associated with either the financial markets or the intermediated markets.
What do Financial Markets do?
Financial Markets generate prices whenever securities are bought or sold. (3)
Bank examination:
Bank Examination: An audit of the financial condition and overall safety and soundness of a bank by its regulators.
Banking:
Banking refers to banks and other financial intermediaries.
Certificates of Deposits (CDs):
CDs: deposits with specific maturities, also referred to as time deposits.
Comptroller of the Currency:
Comptroller of the Currency: The primary regulator or nationally chartered commercial banks.
Federal Deposit Insurance Corporation (FDIC):
FDIC: A federal agency that insures deposits at commercial banks, savings banks and savings and loan associations. It also examines and supervises state-chartered commercial banks that are not members of the Federal Reserve System.
Federal Reserve:
Federal Reserve (The Fed): The central banking system and monetary authority of the US, made up of regional Federal Reserve banks and the Federal Reserve Board of Governors, which supervises and examines state-chartered member banks, regulates bank holding companies, and is responsible for the conduct of monetary policy.
Financial Markets:
Financial Markets: Markets in which financial assets can be traded.
Government National Mortgage Association:
GNMA: A division of the US Department of Housing and Urban Development that insures pools of FHA and VA mortgages.
GNMA pass-through securities:
GNMA pass-through securities: Claims to a pool of FHA-VA mortgages insured by the Government National Mortgage Association.
Money:
Money: Whatever is used as a medium of exchange, unit of account, and store of value, (legal tender and money supply).
