Equities
The first time a company issues stock to the public.
Initial Public Offering
50bps would represent what?
0.50%
What is Matt and Sierra’s job title?
Senior Investment Analyst
This is the name of the committee within the Federal Reserve that sets monetary policy, including interest rates.
Federal Open Market Committee
PPI stands for ____
Producer price index
This index tracks the 500 largest publicly traded U.S. companies.
S&P 500
The most common benchmark for risk-free fixed income investments in the U.S.
US Treasury Bonds
Secondary sells mortgages to who?
Fannie Mae
The Federal Reserve is responsible for setting this key interest rate, which influences borrowing costs across the economy.
Federal funds rate
This term describes a situation where a single company dominates an industry.
When a company buys back its own shares, it is engaging in this practice.
Stock Buyback (Share Repurchase)
This term refers to the risk that interest rates will rise, causing bond prices to fall.
Interest rate risk
The investment portfolio accounts for roughly ____ % of CFB total assets.
~ 65%
The Federal Reserve has this many regional banks across the U.S.
12
This economic principle states that as you consume more of a good, the additional satisfaction you get from it decreases.
the law of diminishing marginal utility
This ratio measures how expensive a stock is compared to its earnings per share.
Price to earnings (P/E) Ratio
A bond with a rating below BBB (S&P) or Baa (Moody’s) is considered this.
Junk or High-yield bond
Name an investment product that our department manages, but is not in the investment portfolio.
Syndicated Loans
The Federal Reserve adjusts the money supply using these three main tools.
open market operations, the discount rate, and reserve requirements
If two goods have a positive cross-price elasticity, they are considered this type of good.
Substitutes
A company’s total stock market value, calculated as stock price × number of shares outstanding.
Market Capitalization
If a bond is trading above its face value, it is selling at this.
Premium
What type of security accounts for the largest percentage of CFB’s portfolio?
Corporate Bonds
The Federal Reserve uses this type of policy to combat inflation by raising interest rates.
contractionary monetary policy
If the price of gasoline increases and the demand for cars decreases, the cross-price elasticity is likely to be this.
Negative