financial markets
What is a continuous market
A type of market where traders can trade at any time when the market is open. Buyers and sellers continuously place their orders and are matched on a continuous basis.
What is the difference between the 2
Local banks are more personalized, while retail offers more convenience and accessibility.
Define Liquidity
Refers to how easily assets can be converted into cash
What is a deposit account
A type of bank account that allows money to be deposited and withdrawn by the account owner. Examples of deposit accounts are savings accounts and certificates of deposit.
what is a overdraft protection
Overdraft protection is a guarantee that a check, ATM, wire transfer or debit card transaction will clear if the account balance falls below zero.
what is the difference between hard and soft commodities.
Hard commodities include natural resources that must be mined or extracted, such as gold, rubber, and oil, while soft commodities are agricultural products or livestock, such as corn, wheat, coffee, sugar, soybeans, and pork.
What services does a retail bank offer
Savings and checking accounts, mortgages, personal loans, debit and credit cards, and certificates of deposit(CD)
Define financial market
Any marketplace where trading of securities including equities, bonds, currencies and derivatives occur
What is the rule of 3
The process of comparing at least three alternative vendors for goods and services.
Define a private placement
A private placement is a capital raising event that involves the sale of securities to a relatively small number of select investors. Investors involved in private placements can include large banks, mutual funds, insurance companies and pension funds.
what is a stock market
the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses
what are local banks insured by
The federal Deposit Insurance Corporation(FDIC)
Define Efficiency in Business
A measurable concept, quantitatively determined by the ratio of useful output to total input
What is a Credit Union
A cooperative financial organization that exists to provide banking services (e.g., saving and checking accounts and loans) to its members.
how does export financing help a business
Export finance helps businesses release working capital from cross-border or domestic trade transactions, that would otherwise be tied-up in invoices or purchase orders (for up to 180 days). Export finance is specialist finance that can help a company to grow and increase trade
what is a call market
A type of market in which each transaction takes place at predetermined time intervals
Which has a higher deposit account rate
Local banks
What is a Primary Capital
When a company publicly sells new stocks and bonds for the first time, it does so in the primary capital market. This market is also called the new issues market.
Define compound interest
Interest that is credited daily, monthly, quarterly, semi-annually, or annually on both principal and previously credited interest.
What does ACH stand for, and what is it
Automatic Clearing House, the electronic clearing and settlement system used for financial transactions by US commercial banks and other institutions
what is a Forex market
A place where you make a transaction by converting money to another country's currency.
What is a line of credit?
A business or personal account given a certain amount of money based on a credit score.
Eurocurrency
currency deposited by national governments or corporations, outside of its home market. For example, it can be currency held in banks located outside of the country which issues the currency
What does APY stand for, and what is it
Annual Percentage Yield, The annual rate of return on a bank product (e.g., checking account, savings account, and certificate of deposit) that takes into account the frequency of compound interest
Define a vendor lease
In an effort to stimulate its sales, a retail vendor can align with a leasing company and provide what is known as vendor leasing. To do so, the vendor establishes a deal with a financing source so that the vendor can offer leases to customers.