Financial liabilities- it is in curved by the issuer of the asset which liability is owned
interest rate- the price paid for the use of a financial asset.
Stocks - financial assets that convey a assets in a corporation
Bond- is the promise to pay a certain amount of money plus interest
A bank is a financial intermediate uses liquid assets (bank deposits) to finance the investments of the borrowers. In a process known as fractional reserve
Banking- a system in which depositors institution hold liquid assets less then the amount of deposits can take the form of currency in banks vaults
Banks Reserve- deposits held at the Federal Reserve
The picture of the chart really helped me to understand what falls where and whether it increases or decreases! Don't forget that bonds are a promise to pay a certain amount of money plus interest in the future.
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