Chapter 11/12 Terms

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Across
  1. 1. an asset that maintains its value, rather than depreciating.
  2. 3. the interest rate at which a depository institution (generally banks) lends or borrows funds with another depository institution in the overnight market.
  3. 5. the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
  4. 7. the component of a required return that represents compensation for inflation risk.
  5. 9. the money an investor transfers into a savings or checking account held at a bank or credit union.
  6. 14. an intermediary instrument or system used to facilitate the sale, purchase, or trade of goods between parties.
  7. 16. a deposit of money that can be withdrawn without prior notice, e.g. in a current account.
  8. 17. the portion of reservable liabilities that commercial banks must hold onto, rather than lend out or invest.
  9. 19. cash funds held by banks over and above the Federal Reserve's requirements
  10. 21. an account at a bank or building society from which money may be withdrawn without notice, typically an active account catering for frequent deposits and withdrawals by cheque.
  11. 23. a fixed-income instrument that represents a loan made by an investor to a borrower
  12. 28. the operation of storefront locations away from the institution's home office for the convenience of customers.
  13. 29. the function of money that enables the values of different goods and services to be compared
  14. 32. money that is stored electronically, for example, on a computer or plastic card, and can be used to pay for products and services, for example, on the internet
  15. 35. Both parties have to agree to sell and buy each commodity.
  16. 38. an item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
  17. 39. the availability of liquid assets to a market or company
  18. 40. the state of being legally responsible for something.
  19. 42. a piece of paper money, constituting a central bank's promissory note to pay a stated sum to the bearer on demand.
  20. 43. the interest rate at which a nation's central bank lends money to domestic banks
  21. 44. an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor.
  22. 45. a system of money in general use in a particular country
  23. 47. a financial institution whose primary roles are to accept and safeguard monetary deposits
  24. 48. the total amount of money in circulation or in existence in a country.
  25. 49. one where the bank or building society requires advance notice before you withdraw any of your money
Down
  1. 2. one-half of a percentage point wide and at the center of the bank is the target for the overnight rate.
  2. 4. a thing of superior quality which serves as a point of reference against which other things of its type may be compared
  3. 6. a sum of money paid into a bank or building society account.
  4. 8. the lowest rate of interest at which money may be borrowed commercially.
  5. 10. the percentage increase in money you pay the lender for the use of the money you borrowed.
  6. 11. a set of tools that a nation's central bank has available to promote sustainable economic growth by controlling the overall supply of money that is available to the nation's banks, its consumers, and its businesses.
  7. 12. a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
  8. 13. the maximum amount of money a bank can create for each unit of reserves.
  9. 15. earn profits from investments in high yielding capital, but not from holding cash reserves.
  10. 18. a constraint on the expansion of the MONEY SUPPLY through BANK DEPOSIT CREATION
  11. 20. a system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal.
  12. 22. money whose value comes from a commodity of which it is made.
  13. 24. the annual income from an investment expressed as a proportion (usually a percentage) of the original investment.
  14. 25. any object that is generally accepted as payment for goods and services and repayment of debts in a given country
  15. 26. a deposit account
  16. 27. assets held on reserve by a central bank in foreign currencies.
  17. 30. coins or banknotes that must be accepted if offered in payment of a debt.
  18. 31. A money market fund is a kind of mutual fund that invests in highly liquid, near-term instruments.
  19. 33. the interest rate the central bank sets to target monetary policy
  20. 34. a current account at a bank.
  21. 36. Inconvertible paper money made legal tender by a government decree.
  22. 37. money obtained by dubious means or for little work.
  23. 41. a financial institution whose primary roles are to accept and safeguard monetary deposits
  24. 46. assets which can readily be converted into cash, such as bills of exchange.