Finance
This concept states that by dividing a certain number by an interest rate, you can determine how many years until a sum doubles
What is the Rule of 72
This is know as the accounting equation
What is Assets = Liabilities + Owners Equity?
This investment vehicle consists of a stream of payments over a set period of time
What is an annuity?
Also known as QE, this is the general policy undertaken by the Fed focused on increasing the money supply and stimulating economic growth
What is quantitative easing?
This rule dictates that banks must maintain a minimum proportion of deposits in reserve
What is the reserve requirement ratio?
This economist argued that active government intervention in the economy is necessary to prevent and remedy recessions
Who is John Maynard Keynes?
In an accounting entry, every debit must have a corresponding, this
What is a credit?
Paying one of these is a way for a company to distribute earnings to investors
What is a dividend?
This Fed strategy involves shrinking the money supply through shrinking its balance sheet and raising interest rates, and is often used to fight inflation
What is quantitative tightening?
This federal agency is in charge of regulating American banks for compliance with risk and legal regulations
What is the FDIC?
CFO stands for this position in an organization
What is Chief Financial Officer?
When determining the profitability of a business, this is the statement you turn to
What is an income statement?
This investment concept is equivalent to not putting all of your eggs in one basket
What is diversification?
This chairman of the Fed under Carter and Reagan was known for his aggressive approach to fighting inflation
Who is Paul Volker?
A banks’ overall risk is measured in terms of market, credit, and this type of risk category
What is liquidity risk?
This concept argues that a sum of money is worth more now than it will be at a future date
What is the Time Value of Money?
To assess debt and equity levels in a business, you would look as this statement
What is a balance sheet?
This is the discounted sum of a future payment, sum, or series of cash flows after factoring in the time value of money
What is present value?
This current Federal Reserve chair faces the same challenge as Chairman Volker in fighting inflation
Who is Jerome Powell
When treasury bond yields suddenly ______, banks may face liquidity risks as they must report unrealized losses on their income statements and depositors may start a bank run
What is rise?
When the price of a bond falls, it’s yield does this
What is increase?
This financial statement shows cash used in or brought in by financing, operating, and investing activities
What is the statement of Cash Flows?
This type of option allows a buyer to buy the right to sell x number of shares by x date for x price
What is a put?
The Federal Reserve Board is composed of this many district banks
What is 12?
In this division of the FDIC, banks are examined for proper adherence to risk management practices and regulations
What is the Division of Risk Management Supervision?