Finance 1
Funds lodged in an account for predetermined period at at specified interest rate
What is Term deposit?
The underlying principles that hold Finance together.
What are risk & rewards, supply & demand, no arbitrage and time value of money?
Innovative products and services in provision of advice,management and funding services, generating their main income from fees for eg. Forex and Mergers & Acquisitions
What is Off-balance-sheet business?
Financial institutions, financial Instruments, financial market.
What is a Financial System?
Equity, debt and derivatives
What are financial instruments?
-credit risk of banks' asset and Off balance sheet business.
-Market risks of banks' trading activities
-Operational risks of banks' business operations
-Form & quality of capital held ti support these exposure
-Risk identification, measurement and management Processes
-Transparency through accumulation and reporting
What are the main elements of Basel 111?
Advantages of Intermediate Finance
What are asset transformation,maturity transformation, credit risk diversification, Liquidity transformation and Economies of scale?
Imposition and monitoring of standards designed to ensure the soundness and stability of an financial systems
What is a prudential supervision?
Hybrid (quasi-equity) security
what are preference shares and convertible notes?
The issue of new financial instruments to raise funds to purchase goods, services or asset
what are primary market transaction?
This market has wholesalers with short term securities issued and traded.
What is money market?
What is Basel 1?
The four derivatives
what are futures, forward, option and swap contracts?
The buying and selling of existing financial securities?
What are secondary market transactions?
Market in which longer term securities are issued and traded with original term-to-maturity in excess of one year
What is capital market?
The minimum capital adequacy requirement applies to commercial banks and other institutions specified by the prudential regulator
What is capital adequacy standard?
Long term loan must financed long term assets
What is matching Principle?
-Avoid costs of intermediate
-increase access to diverse range of market
-greater flexibility in range of securities users can issue for different financing needs
What are advantages of Direct Finance?
Lending to Government
what are treasury notes?
Basel 111 pillar 3
What is market discipline?