Overview. Financial institutions. Financial institutions
|
|
- Morgan Dickerson
- 5 years ago
- Views:
Transcription
1 Financial institutions Banking originated in medieval Italy but was based on mathematical knowledge acquired from wide-reaching trade interactions. Google Classroom Facebook Twitter Overview Banking originated in medieval Italy but was based on mathematical knowledge acquired from wide-reaching trade interactions. Leonardo Fibonacci s book, Liber Abaci, introduced Indian and Islamic mathematical concepts to Europe and applied them specifically to commerce and finance. The development of the banking industry made trade and transferring funds over long-distances easier. Financial institutions Banks are institutions that accept and manage deposits of money from people and also offer credit or loans to clients. The term bank comes from the medieval Italian word banca bench or table in English. The term came to be used because early financial transactions were conducted at a table or bench. 1/6
2 10/27/2017 Financial institutions (article) Khan Academy The moneylender and his wife, Image credit: Wikipedia Even though the practice of banking as we know it today originated in medieval Italian city-states, these practices didn t appear out of nowhere. They were the culmination of many centuries of development. Italy became the birthplace of banking in the twelfth and thirteenth centuries because it was at the center of a global trading network that exposed Italian traders and their financiers to various methods of money management. Italians then built on this knowledge to create new and better methods of handling financial exchanges. In 1202, Leonardo Fibonacci published a book called the Liber Abaci The Book of Calculation. Famous today for the Fibonacci sequence, Fibonacci was the son of a customs official someone who collects taxes on imported 2/6
3 goods so he had a lifetime of experience with trade and finance. In his book, Fibonacci explained how to use mathematical concepts that had been developed in India and the Middle East and apply them to the business of trade and money management. While finance and commerce were not new to Europe, the methods that Fibonacci introduced made much more complex financial calculations possible. 1 Trade and credit In the medieval period, long-distance trade was risky because of high upfront costs and the possibility of a failed venture. Paying for a medieval trading voyage required several steps: buying goods that could be exchanged at the destination, fitting out a ship or pack animals, and hiring people to actually make the trip. Because a successful trading voyage could yield large profits, the expense of launching a trading voyage was considered a worthwhile investment. But trade took a long time. The delay between funding the voyage and collecting the profits assuming the voyage was successful was considerable. A single trading voyage might take months or even years to return to its place of origin with new goods to sell. Credit helped to fill the gap between paying for the voyage and collecting the profits. Credit refers to the lending and borrowing of money with a promise that it will be repaid at some future date. The idea of lending money to traders in return for a share of the venture s profit existed in many societies. For example, partnerships where an investor funded a trader s venture in return for a share of the profits were common throughout the Abbasid Caliphate, Song China, and in European trading cities. In any of these settings, a trader might have needed to borrow money up front to finance his voyage. Knowing that he almost all medieval traders 3/6
4 were men would be able to pay off the debt once he had sold his goods, he would obtain a loan with a promise to pay the lender a share of the profit if the trading venture was successful. The emergence of Italian banks This practice of lending money to traders in exchange for a share of potential profit was a well-established practice by the time banking appeared in Italy. Lending out money and collecting interest a charge to borrow money on top of the principal loan amount was the simplest way to make money from loans, but religious prohibitions kept most people from doing it. Interest was considered usury by the Catholic Church and riba in Islamic law. In Judaism, charging interest to fellow Jews was forbidden, but charging interest to others was acceptable. In all of these cases, the prohibition on charging interest was driven by a combination of concerns over which ways of making money were ethical, particularly since these practices tended to be most damaging to the poor. The change that occurred in thirteenth century Italy with regard to banking and finance was not the invention of credit. Rather, the new idea was that a person could make money from buying and selling financial instruments essentially monetary contracts such as a bill of exchange. Profits earned on legitimate trade, or through natural increases in value of an item, avoided the potential charge of usury. Bills of exchange were written agreements that entitled the holder of the bill to a specified payment from a third party. You can think of a bill of exchange as having value because it promises a future payment. Rather than just loaning money to traders and waiting for them to return to share the profits, bankers began buying and selling these bills of exchange as objects of value in and of themselves. 4/6
5 For example, imagine an investor had lent money to a trader but needed that money before the trader returned. The investor could write a bill of exchange that entitled the holder to the investor s share of the profit. He could then sell that bill, probably at a slightly discounted price, in order to get money now. The buyer of the bill could then collect the original investor s share from the trader when he returned. Expansion of banking The Medici of Florence were not the first Italian family to take up banking, but they were the most successful. From the late fourteenth century until the end of the fifteenth century, the Medici established branches of their bank in major cities throughout Europe. Having branches in different cities allowed the Medici to make money by taking advantage of changing exchange rates and therefore avoiding committing the sin of usury. 2 Having banks in many cities that were willing to honor bills of exchange also made it possible to transfer large sums of money across the continent. Since a Medici Bank bill of exchange could be redeemed at any branch, a person could move money without taking the risk of physically transporting coins. Not only merchants and traders, but kings and Popes borrowed from the Medici and other major banking families. This was in part because no one else was able to lend the amount of money needed to fund a war, for example. This made banking families very powerful and important players in politics as well as economics. Conclusion Although various financial tools and practices developed in China and the Middle East, it was only in Europe that a full-blown banking industry arose. Historians have puzzled over why this was the case, particularly since China and the Middle East both had far more developed economies than Europe 5/6
6 prior to the emergence of large-scale banking. Europe s development of financial institutions certainly drew heavily on information gained through commercial interactions with these places. So why did Europe develop a banking industry so long before China or the Middle East? One theory is that both the Song Dynasty and the Abbasid Caliphate were toppled by the Mongols at about the time that Italian banking was starting to develop, which could have stalled economic development in those regions. In addition, some historians have argued that the fractured political organization of Europe actually helped in the development of banking. The idea has some merit, since the Medici made much of their fortune by exploiting exchange rates between the large variety of local currencies throughout Europe. Large imperial structures, such as those in Song China and the Abbasid Caliphate, meant a common currency with no opportunity to exploit exchange rates. [Notes and attributions] 6/6
480 Ducats 20 Ducats
ACTIVITY 21.1 Venice to London Cards 480 Ducats 20 Ducats 98 Pounds Sterling TO: Bank Branch in London Please pay the equivalent of 480 (Payee s Name Goes Here) Ducats (98 Pounds Sterling) from. (Payer
More informationLecture 4: Development of Banking in Medieval Europe
Lecture 4: Development of Banking in Medieval Europe Monetary transaction in the medieval Europe Banking in Northern Italy Money Lending Business and Christianity Birth of Banking in 16C Monetary transaction
More informationProfit Growth Strategies By Brian Tracy
Profit Growth Strategies By Brian Tracy Getting the Money You Need Introduction Thought is the original source of all wealth, all success, all material gain, all great discoveries and inventions, and of
More informationChapter 04 Future Value, Present Value and Interest Rates
Chapter 04 Future Value, Present Value and Interest Rates Multiple Choice Questions 1. (p. 66) A promise of a $100 payment to be received one year from today is: a. More valuable than receiving the payment
More informationSBP. 1. Public Finances 2. Currency and Exchange 3. International Trade and Commerce 4. Credit System
SBP Purpose of Central Bank was first founded in 16 th Century when Banco di Rialto (State Bank o f Italy) was formed in Genoa to regulate the affairs of Banking System in Italy. However, culture of State
More information!!!!! Anonymous! Student ECON X0X43 Some Semester. Dr. John Lovett! The Cheapening of Money and the Industrial Revolution! Abstract:!
Anonymous Student ECON X0X43 Some Semester Abstract: Dr. John Lovett The Cheapening of Money and the Industrial Revolution Financial intermediation has been around since the early twelfth century, but
More informationFAQ: Securities and Financial Markets
Question 1: What is agency relation within the context of a corporation, and what type of problems may arise as a result of such a relation? Answer 1: Agency relation is created whenever a company hires
More informationEXCEPTIONAL SALES: SALAM AND ISTISNA'
EXCEPTIONAL SALES: SALAM AND ISTISNA' Murabaha and ijara constitute the core financing activities of Islamic banks. They are easily understood because of their proximity to conventional financing techniques,
More informationWorksheet 5 Hong Kong: From Entrepot to International Financial Centre
S1 IH A Brief History of Hong Kong 23 IH Worksheet 5 Hong Kong: From Entrepot to International Financial Centre Over the last two centuries, the world has undergone a lot of changes and so has Hong Kong.
More informationXIV International Economic History Congress, Helsinki 2006, Session 112
XIV International Economic History Congress, Helsinki 2006, Session 112 Luciano Pezzolo Department of Economics University Ca Foscari, Venice (Italy) pezzolo@unive.it Public debts and financial markets
More informationWARM UP. governments collect taxes? 1) What are taxes??? 2) Why do people pay taxes? Why do
WARM UP 1) What are taxes??? 2) Why do people pay taxes? Why do governments collect taxes? 3) What are some taxes that we all pay? How do we feel about taxes? Salutary Neglect I. During the early years
More informationCost of home today is double the amount in weeks of labour time compared to 1970s: New study
Cost of home today is double the amount in weeks of labour time compared to 1970s: New study May 2016 Marc Lavoie* *Marc Lavoie is Professor in the Department of Economics at the University of Ottawa and
More informationITB Semester 2 Exam Review
Class: Date: ITB Semester 2 Exam Review Completion Complete each statement. 1. Trading goods and services allows countries to meet their individual wants and needs as well as to help their own. 2. is the
More informationTopic 5 Sources of Finance. N5 Business Management
Topic 5 Sources of Finance N5 Business Management 1 Learning Intentions / Success Criteria Learning Intentions Sources of finance Success Criteria By end of this topic you will be able to describe: sources
More informationImage credit:
There is a storm brewing in the global economy, and the US economy is at the heart of that storm. When it breaks (and at this point, its breaking is inevitable), it is going to destroy the world as we
More informationSaving, Investment, and the Financial System
Chapter 9 MODERN PRINCIPLES OF ECONOMICS Third Edition Saving, Investment, and the Financial System Outline The Supply of Savings The Demand to Borrow Equilibrium in the Market for Loanable Funds The Role
More informationTHE TRUTH ABOUT FIBONACCI TRADING
PRESENTS THE TRUTH ABOUT FIBONACCI TRADING ALL TRADING INFORMATION REVEALED 1 INTRODUCTION The truth about Fibonacci levels is that they are useful (like all trading indicators). They do not work as a
More informationA METHOD OF PURCHASING GOODS AND SERVICES ON THE INTERNET USING INTERNET SERVICE PROVIDERS TO TRANSFER THE MONEY TIMOTHY J.
A METHOD OF PURCHASING GOODS AND SERVICES ON THE INTERNET USING INTERNET SERVICE PROVIDERS TO TRANSFER THE MONEY BY TIMOTHY J. WALSHAW ABSTRACT This article describes a method of purchasing goods and services
More informationName: Class: U.S. History 2 Date:. Mr. Wallace. 1. is buying stocks with loans from brokers. (Buying on margin/buying short)
Name: Class: U.S. History 2 Date:. Mr. Wallace Vocabulary Builder Section 1 DIRECTIONS: Read each sentence and fill in the blank with the term in the term pair that best completes the sentence. 1. is buying
More informationInternational Journal of Current Research and Modern Education (IJCRME) Impact Factor: 6.725, ISSN (Online): (www.rdmodernresearch.
A STUDY ON CAMEL ANALYSIS IN INDIAN BANK S. Jayashanthi Head, Department of B.Com PA, Sri. S. Ramasamy Naidu Memorial College, Sattur, Tamilnadu Cite This Article: S. Jayashanthi, A Study on Camel Analysis
More informationInfinite Banking How it Works By Gary Vande Linde
Why I am Interested in the Concept Infinite Banking How it Works By Gary Vande Linde Three years ago I left a large company, where I had served as the division engineer for the past twelve years, to become
More informationKen MacDonald & Co Lawyers and Estate Agents Mortgages: A Guide
Ken MacDonald & Co Lawyers and Estate Agents Mortgages: A Guide Introduction A mortgage is a sum of money borrowed from a bank or building society in order to purchase property. The money is then paid
More informationCopyright by Profits Run, Inc.
The Truth About Fibonacci Trading 2 Disclaimer: Forex, stock, futures, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses
More informationAQA Economics A-level
AQA Economics A-level Macroeconomics Topic 4: Financial Markets and Monetary Policy 4.1 The structure of financial markets and financial assets Notes The characteristics and functions of money A medium
More informationBanking Basics Table of contents Introduction 4 What is a bank? 6 How do people start banks? 7 How did banking begin? 8 Why are there so many different types of banks? 11 How do I choose a bank? 13 What
More informationMoney, Banking, and the Financial System CHAPTER
Money, Banking, and the Financial System 12 CHAPTER Money: What Is It and How Did It Come to Be? Money: A Definition To the layperson, the words income, credit, and wealth are synonyms for money. In each
More informationQ: What types of Financial Institutions and transactions are involved in Islamic finance?
Q: What is Islamic Finance Islamic finance is an interest free finance system. There is therefore, no charge for its use. Islamic finance is asset based as opposed to being currency based. A deal is structured
More information25556 The financial system:
25556 The financial system: Lecture 1: A financial system consists of financial institutions, markets and instruments that together provide financial services for the economy Their major tasks are known
More informationLecture 2 (a) The Firm & the Financial Manager
Lecture 2 (a) The Firm & the Financial Manager Finance is about money and markets, but it is also about people. The success of a corporation depends on how well it harnesses everyone to work to a common
More informationMoney, Banking and the Federal Reserve System. Chapter 10
Money, Banking and the Federal Reserve System Chapter 10 Changes for the last few weeks For the next two weeks we will be doing about a chapter a day so we need to pick up the pace a little bit. You will
More informationIslamic Financing Shift from Debt to Equity An analysis of Business Framework
Islamic Financing Shift from Debt to Equity An analysis of Business Framework Muhammad Hanif (FCMA) Assistant Professor NU-FAST Islamabad. i Electronic copy available at: http://ssrn.com/abstract=1690867
More informationWhat Makes Money..Money? (HA)
What Makes Money..Money? (HA) Kyle MacDonald managed to get the house he wanted using barter. To do this, he relied on a coincidence of wants. People wanted what he had, and he wanted what they had. MacDonald
More informationAn Enhanced Objective Financial Stability
An Enhanced Objective Financial Stability KEY POINTS The financial system has grown much more sophisticated over the past century, as has the Federal Reserve s approach to keeping it safe. Financial stability
More informationCredit II Lecture 25
Credit II Lecture 25 November 27, 2012 Operation of the Credit Market Last Tuesday I began the discussion of the credit market (Chapter 14 in Development Economics. I presented material through Section
More informationD Is For Dominance, Debt & Depression
D Is For Dominance, Debt & Depression Sell dreams on credit, you ll make a fortune on the interest Often, at the end of a movie, clues once hidden become obvious and the reasons for the fall of the hero
More informationTime Resolution of the St. Petersburg Paradox: A Rebuttal
INDIAN INSTITUTE OF MANAGEMENT AHMEDABAD INDIA Time Resolution of the St. Petersburg Paradox: A Rebuttal Prof. Jayanth R Varma W.P. No. 2013-05-09 May 2013 The main objective of the Working Paper series
More informationCredit Lecture 23. November 20, 2012
Credit Lecture 23 November 20, 2012 Operation of the Credit Market Credit may not function smoothly 1. Costly/impossible to monitor exactly what s done with loan. Consumption? Production? Risky investment?
More informationLecture 3 China s Foreign Direct Investment
Chinese Economy and International Exposure Lecture 3 China s Foreign Direct Investment Prof. Dr. Ping Lv( 吕萍 ) School of Economics and Management University of Chinese Academy of Sciences Beijing, China
More informationWhy Your Broker Won t Tell You About Covered Calls Introduction Welcome to our free report, "Covered Calls: What Your Broker Won t Tell You " Today, we re going to keep this report short and sweet but
More informationTitle: Technological Innovations in Indian Banking Sector Ms. Aruna R. Shet, Asst Professor, New Horizon College id:
ABSTRACT Title: Technological Innovations in Indian Banking Sector Ms. Aruna R. Shet, Asst Professor, New Horizon College Email id: arunavshet582012@gmail.com The banking sector in India has seen a number
More informationoo ks. co m w w w.s ur ab For Order : orders@surabooks.com Ph: 9600175757 / 8124201001 Model Question Papers Based on Scheme of Examination as per G.O. (2D). No. 50 dated : 09-08-2017 Type of Questions
More information9.3 The Federal Reserve System L E A R N I N G O B JE C T I V E S
2. Acme Bank s balance sheet after losing $1,000 in deposits: Figure 9.11 Required reserves are deficient by $800. Acme must hold 20% of its deposits, in this case $1,800 (0.2 x $9,000=$1,800), as reserves,
More informationCIE Economics A-level
CIE Economics A-level Topic 4: The Macroeconomy f) Money supply (theory) Notes Quantity theory of money (MV = PT) The Quantity Theory of Money states that there is inflation if the money supply increases
More informationThe Truth About Fibonacci. Trading
The Truth About Fibonacci Trading 2 The Truth About Fibonacci Trading The truth about Fibonacci levels is that they are useful (like all trading indicators). They do not work as a standalone system of
More informationBFF1001 Week 1 Topic 1: What is finance
BFF1001 Week 1 Topic 1: What is finance Definitions Deficit A deficit unit saves less money than it invests A deficit unit needs funds If saving is less than investment, a deficit occurs Surplus A surplus
More informationUniontown Bible Church. Stewardship Manual
Uniontown Bible Church Stewardship Manual 1 of 15 UBC Stewardship Manual 5/28/2009 TABLE OF CONTENTS Introduction... 3 General Rules and Guidelines... 4 Procedures for Spending Money... 7 Procedures for
More informationAN EXPORTER S GUIDE TO. Working Capital Loan Guarantees
AN EXPORTER S GUIDE TO Working Capital Loan Guarantees In This Guide Introduction The Value of a Working Capital Loan Guarantee How It Works The Application Process Case Study: CECA Supply & Services Inc.
More informationPAGE ONE Economics. Financing Businesses and Public Projects with Stocks and Bonds
PAGE ONE Economics Middle School Version Financing Businesses and Public Projects with Stocks and Bonds Barbara Flowers, Coordinator, Economic Education GLOSSARY Bond: A certificate of indebtedness issued
More informationResistance to support
1 2 2.3.3.1 Resistance to support In this example price is clearly consolidated and we can expect a breakout at some time in the future. This breakout could be short or it could be long. 3 2.3.3.1 Resistance
More informationMONEY AND CREDIT VERY SHORT ANSWER TYPE QUESTIONS [1 MARK]
MONEY AND CREDIT VERY SHORT ANSWER TYPE QUESTIONS [1 MARK] 1. What is collateral? Collateral is an asset that the borrower owns such as land, building, vehicle, livestock, deposits with the banks and uses
More informationEOCNOMICS- MONEY AND CREDIT
EOCNOMICS- MONEY AND CREDIT Banks circulate the money deposited by customers in the banks by lending it out to businesses at a rate of interest as a credit, which then acts as the income of the bank....
More informationEquity crowdfunding Sharia compliant
ABSTRACT The deep recession and the development of Web 2.0 technology, accounted the breeding ground for the birth of the Crowdfunding. The term, which literally indicates funding from the crowd, defines
More informationThrough your Will or Trust To the Most Holy Trinity Educational Trust Fund
Planned Giving Through your Will or Trust To the Most Holy Trinity Educational Trust Fund The Most Holy Trinity Educational Trust Fund (ETF) was established in 1984 to provide financial support for all
More informationBeing an economist and the economics of money Not as boring at it sounds. Tony Yates, aged 49 and ¾ [=Jonas Dad]
Being an economist and the economics of money Not as boring at it sounds Tony Yates, aged 49 and ¾ [=Jonas Dad] BEING AN ECONOMIST This is a photo of a robot. People often think of economists as a bit
More informationWorkbook 2. Banking Basics
Workbook 2 Banking Basics Copyright 2017 ABC Life Literacy Canada First published in 2011 by ABC Life Literacy Canada All rights reserved. ABC Life Literacy Canada gratefully thanks Founding Sponsor TD
More informationCoordinator & Sales Assistant Training Module 1: Credit Union and CUNA Mutual Group History
Coordinator & Sales Assistant Training Module 1: Credit Union and CUNA Mutual Group History The Coordinator and Sales Assistant Training Module 1 is a written module, Credit Union and CUNA Mutual Group
More informationInternational Journal of Exclusive Management Research June 2011-Vol 1 Issue 2 ISSN
GROWTH RATE AND GROWTH PATTERN OF SELECTED PUBLIC SECTOR S IN *M.KAVITHA * Research Scholar, Department of Commerce, Bharathiyar University, Coimbatore, India. ABSTRACT A good bank is not only the financial
More information10. Dealers: Liquid Security Markets
10. Dealers: Liquid Security Markets I said last time that the focus of the next section of the course will be on how different financial institutions make liquid markets that resolve the differences between
More informationGovernment Policy and Regulation on the Financial-Services Industry
Government Policy and Regulation on the Financial-Services Industry 2-1 Key Topics The Principal Reasons for Banking and Financial- Services Regulation Major Financial-Services Regulators and Laws Some
More informationIslamic Banking Two steps forward and four steps backward?
Islamic Banking Two steps forward and four steps backward? Under Islamic Banking (IB) the sharia laws or Islamic laws of banking are followed. It is also referred to Sharia Banking or Interest Free Banking.
More informationUnderstanding the Loan Application Process
Understanding the Loan Application Process Introduction Buying a home may be the most exciting, confusing and stressful financial transaction you ever undertake. Even if you have done it several times
More informationStock and Bond Valuation: Annuities and Perpetuities
Stock and Bond Valuation: Annuities and Perpetuities Lecture Slides 3 Brais Alvarez Pereira Important Shortcut Formulas Present value formula= main workshorse for valuing investments. Investment rarely
More informationChapter 16: The Federal Reserve and Monetary Policy Section 2
Chapter 16: The Federal Reserve and Monetary Policy Section 2 Objectives 1. Describe how the Federal Reserve serves the federal government. 2. Explain how the Federal Reserve serves banks. 3. Describe
More informationQuoting an exchange rate. The exchange rate. Examples of appreciation. Currency appreciation. Currency depreciation. Examples of depreciation
The exchange rate The nominal exchange rate (or, for short, exchange rate) between two currencies is the price of one currency in terms of the other. It allows domestic purchasing power to be spent abroad.
More informationChapter 9 Business finance
Chapter 9 Business finance Businesses cannot survive without finance, whether in the form of initial funds to start the business, working capital to run the business day-to-day, or investment capital to
More informationEdexcel (B) Economics A-level
Edexcel (B) Economics A-level Theme 2: The Wider Economic Environment 2.6 Introduction to Macroeconomic Policy 2.6.3 Potential policy conflicts and trade-offs Notes Unemployment vs inflation: In the short
More informationPeople Who Built America: Morgan
People Who Built America: Morgan By Noah Remnick People Who Built America: Morgan John Pierpont Morgan was born on April 17, 1837 into a wealthy family in Hartford, Connecticut. His father was a banker,
More informationThe nominal value of any economic statistic is measured in terms of actual prices that exist at the time.
Adjusting nominal values to real values Learn how and why we adjust GDP numbers for inflation. Google Classroom Facebook Twitter Email Key points The nominal value of any economic statistic is measured
More informationWHY DO BANKS CONSIDER THE LOOK AND IMAGE OF THEIR BUILDINGS TO IS CONSIDERED TO BE AT THE CORE ( THE MOST
LIGHTHOUSE CPA SOCIAL SCIENCES DEPARTMENT ECONOMICS VIDEO STUDY GUIDE - BANKS INTRODUCTION : WHY DO BANKS CONSIDER THE LOOK AND IMAGE OF THEIR BUILDINGS TO BE SO IMPORTANT? _ IS CONSIDERED TO BE AT THE
More informationEconomic Feasibility of Interest Free Products in Indian Commercial Banks
Economic Feasibility of Interest Free Products in Indian Commercial s Faizan Ahmed Hashmi 1, Sharvari Anay Gogte 2 1 PGP 2017 Student IIM Bangalore, faizan.hashmi15@iimb.ernet.in 2 PGP 2017 Student IIM
More informationCPW2A THEORY OF MONEY AND BANKING. Unit : I
THEORY OF MONEY AND BANKING Unit : I Unit: I Introduction to money Kinds functions and significance Demand for and supply of Money Monetary standards Gold standard Bimetallism and paper currency systems
More informationUnit 2. Banking and Customer Relationship
Unit 2 Banking and Customer Relationship Introduction The Indian Banking Regulation Act of 1949 Section 5 (1) defines bank as Accepting of deposit of money from the public, for the purpose of lending or
More information28 Money, Interest Rates, and Economic Activity
28 Money, Interest Rates, and Economic Activity CHAPTER OUTLINE LEARNING OBJECTIVES (LO) In this chapter you will learn 28.1 UNDERSTANDING BONDS 1 why the price of a bond is inversely related to the market
More informationHOW TO BUY A CAR WITH BAD CREDIT
Your credit score is not the only way to prove your credit worthiness. It does do a good job of indicating what type of credit customer you might be; however, today the credit system is being used to exploit
More informationChapter 10: Money and Banking Section 1
Chapter 10: Money and Banking Section 1 Key Terms money: anything that serves as a medium of exchange, a unit of account, and a store of value medium of exchange: anything that is used to determine value
More informationShariah Investment in India: An Unexplored Opportunity
ISSN 2278 0211 (Online) ISSN 2278 7631 (Print) Shariah Investment in India: An Unexplored Opportunity Bikramaditya Ghosh Research Scholar, Jain University, India Dr. Padma Srinivasan Research Guide, Jain
More informationChapter 4.2. Technical Analysis: Fibonacci
1 Chapter 4.2 Technical Analysis: Fibonacci 0 Contents TECHNICAL ANALYSIS: FIBONACCI Fibonacci analysis is the study of identifying potential support and resistance levels in the future based on past price
More informationWhatever happened to crowdfunding?
FCA Future Scenarios ++++++++++++++++++++++++++++ All views expressed in this article are those of the author and do not necessarily represent the views of the Dubai Financial Services Authority or of
More informationChapter 3. Financial Instruments, Financial Markets, and Financial Institutions
Financial Instruments, Financial Markets, and Financial Institutions Problems and Solutions 1. As the end of the month approaches, you realize that you probably will not be able to pay the next month s
More informationA banking service allowing a customer s money to be handled and tracked. Common bank accounts are savings and checking accounts.
Kids Glossary Terms Account Account balance Account fee Annual fee Automated teller machine (ATM) Available Balance Bad check Bad credit Balance your checkbook Bank Bank account Bank statement Bounced
More informationVipin S [1ST PUC ACCOUNTING] As Per New Syllabus under PU Board of Karnataka
2014 Vipin S [1ST PUC ACCOUNTING] As Per New Syllabus under PU Board of Karnataka Unit 1 Introduction to Accounting Professor Vipin 2014 Origin of Accounting The accounting system in India was practiced
More informationECONOMICS. Part V: Money Monetary Equation of Exhange Creation of banking. What does it mean to me? READ Mankiw, Chapter 29, 30, Morton Unit 4
ECONOMICS What does it mean to me? Part V: Money Monetary Equation of Exhange Creation of banking READ Mankiw, Chapter 29, 30, Morton Unit 4 In any society, money is the asset, commodity or token, that
More informationDISCUSSION PAPER FOR COMMENTS. Conceptual issues in Measuring Islamic Finance National Accounts Alick Mjuma Nyasulu 1
WORKSHOP ON ISLAMIC BANKING IN NATIONAL ACCOUNTS 24-26 October 2017, Beirut, Lebanon DISCUSSION PAPER FOR COMMENTS Conceptual issues in Measuring Islamic Finance National Accounts Alick Mjuma Nyasulu 1
More informationHafod Housing Association A Guide to Homebuy. A Guide For First Time Buyers
Hafod Housing Association A Guide to Homebuy A Guide For First Time Buyers Hafod Housing Association Limited is authorised and regulated by the Financial Conduct Authority April 2014 1 What is Homebuy?
More informationLANDMARK CASE BCE INC. V DEBENTUREHOLDERS
BCE INC. V. 1976 DEBENTUREHOLDERS CURRICULUM LINKS: Canadian and International Law, Grade 12, University Preparation (CLN4U) Understanding Canadian Law, Grade 11, University/College Preparation (CLU3M)
More informationE2E Presentation What do Banks Look For?
What is Lee Bank? Been in business here in Berkshire County since 1852. What does a bank like Lee Bank do? How does it help individuals and businesses? Bank s are businesses. How does a bank make a profit?
More informationACCOUNTING STANDARDS & REGULATIONS LECTURE NOTES
ACCOUNTING STANDARDS & REGULATIONS LECTURE NOTES LECTURE 1 THE FUNCTION OF ACCOUNTING LO1: WHAT IS ACCOUNTING? Accounting: a type of recordkeeping. It is necessary to keep records due to increasing social
More informationThe Great Crash Chapter 11 Sect. 1. Prosperity. The Stock Market
The Great Crash Chapter 11 Sect. 1 Prosperity GDP went up 30% from 1922-1928 People bought cars and appliances like crazy; in turn these companies hired workers and kept them prosperous. Unemployment was
More informationAbstract. ISLAMIC FINANCE-A Tool for Financial Inclusion. Smt. Archana H.N, Assistant Professor, Vijayanagara Sri Krishnadevaraya University
Abstract ISLAMIC FINANCE-A Tool for Financial Inclusion Smt. Archana H.N, Assistant Professor, Vijayanagara Sri Krishnadevaraya University In this era of liberalization, privatization, globalization, transnationalisation
More informationCHINA s ENTRY INTO THE WTO AND THE FINANCIAL SECTOR
CHINA s ENTRY INTO THE WTO AND THE FINANCIAL SECTOR Javier Serrado Banco Sabadell-Beijing To open the banking industry is essential part of the basic policy of the China Open Reform. Starting from late
More informationHow Do You Calculate Cash Flow in Real Life for a Real Company?
How Do You Calculate Cash Flow in Real Life for a Real Company? Hello and welcome to our second lesson in our free tutorial series on how to calculate free cash flow and create a DCF analysis for Jazz
More informationCHAPTER 4 INTEREST RATES AND PRESENT VALUE
CHAPTER 4 INTEREST RATES AND PRESENT VALUE CHAPTER OBJECTIVES Once you have read this chapter you will understand what interest rates are, why economists delineate nominal from real interest rates, how
More informationNominal exchange rate
Nominal exchange rate The nominal exchange rate between two currencies is the price of one currency in terms of the other. The nominal exchange rate (or, for short, exchange rate) will be denoted by the
More informationFDR s New Deal Faces Opposition
FDR s New Deal Faces Opposition D. Challenges at Home and Abroad (ca. 1914-1945) f. Explain the economic, environmental, and social impact of the Great Depression on American society g. Evaluate the impact
More informationFinancial Markets and Institutions, 9e (Mishkin) Chapter 2 Overview of the Financial System. 2.1 Multiple Choice
Financial Markets and Institutions, 9e (Mishkin) Chapter 2 Overview of the Financial System 2.1 Multiple Choice 1) Every financial market performs the following function: A) It determines the level of
More informationDevelopment Financial Institutions
CHAPTER 10 Development Financial Institutions LEARNING OBJECTIVES: After studying the chapter you should be able to understand: overview of development financial institutions in india Role of DFis in indian
More informationEXPLORING NORTHERN ROCK The Stone That Must Not Be Left Unturned An article in The Quarterly Review, Vol 1, No 4, Winter 2007
EXPLORING NORTHERN ROCK The Stone That Must Not Be Left Unturned An article in The Quarterly Review, Vol 1, No 4, Winter 2007 "Banking turmoil hits the streets" - the Financial Times' front-page headline
More informationchainfrog WHAT ARE SMART CONTRACTS?
chainfrog WHAT ARE SMART CONTRACTS? WHAT ARE SMART CONTRACTS AND WHERE AND WHY WOULD YOU USE THEM A question I get asked again and again at lectures and conferences is, what exactly are smart contracts?
More informationPresentation Outline Copyright Bank Nizwa. All Rights Reserved. 2
Presentation Outline Real Economy VS Capitalism PREAMBLE Overview of Islamic Finance Section 1 Islamic Banks VS Conventional Banks Section 2 A Glimpse Into Islamic Finance Products and Services Section
More informationPFIN 7: Buying Decisions 45
PFIN 7: Buying Decisions 45 7-1 Buying Plans OBJECTIVES Explain the advantages of using a buying plan. List the steps of a buying plan. Set criteria for selecting one item over another to buy. Explain
More information