Pre Learning Flashcards
What are the services offered by an ADI?
Accept deposits, make loans and provide payment services to their retail and/or wholesale customer
What are the five markets that arrange the flow of funds in Australia
1) The money market- short term debt securities where the borrower makes a single payment to the lender
2) Bond market- long term debt- repays interest in instalments and face value on maturity
3) Share market= equity market for securities
4) FX market= Trading in other currencies
5) Hedge market= market for trading in derivative contracts
What are the main functions of the RBA ?
1) Implement monetary policy
2) Ensure the stability of TFS
3) Regulate the payment system
4) issue notes and coins
5) Act as the Government’s banker
What do wholesale banks do?
Wholesale banks provide banking services to large businesses and organisations
What do invesmtnet banks do
Direct financing services (including the issue of shares and bonds)
What doWhat do fund managers do
Specialise in offering investment services. Collect funds form retail investors to make investments in financial markets
What do retail banks do?
Retail banks accept deposits, make loans and provide payment services for households and small businesses
What is the role of the RBA?
The RBA is Australia’s central bank and manages the overall stability of Australia’s financial system
What is the Australian Prudential Regulation Authroity?
Regulator of ADIs, insurance companies and superannuation fund trustees
Wat is the role of ASIC ?
Responsible for company and financial services laws to protect consumers, investors and creditors
What is the role of the Australian treasury?
Federal department that analyses policy issue with a whole of economy perspective
What is thec ouncil fo financial regulators?
Coordinates the activities of Australia’s main financial regulatory agencies
