Chapter 19 Flashcards
automated banking machine (abm)
ATM
bank holding companies
branches
Additional offices of banks that conduct
banking operations.
community banks
small banks, local
deposit rate ceilings
Restrictions on the maximum
interest rates payable on deposits
disintermediation
A reduction in the flow of funds
into the banking system that causes the amount
of financial intermediation to decline.
dual banking system
The system in the United States
in which banks supervised by the federal government and banks supervised by the states operate
side by side.
e-cash
A form of electronic money used on the
Internet to pay for goods and services.
edge act corporation
financial engineering
: The process of researching and
developing new financial products and services
that would meet customer needs and prove
profitable.
future contracts
hedge
To protect oneself against risk.
IBFs
national banks
orignate to distribute
securitization
The process of transforming illiquid
financial assets into marketable capital market
instruments.
shadow banking system
A system in which bank
lending is replaced by lending via the securities
market.
smart card
state banks
Banks chartered by the states.
subprime mortgage
Mortgage loans made to borrowers who do not qualify for loans at the usual rate
of interest due to a poor credit history.
superregional banks
sweep account
virtual bank
