Financial Markets an der Tshwane University Of Technology | Karteikarten & Zusammenfassungen

Lernmaterialien für financial markets an der Tshwane University of Technology

Greife auf kostenlose Karteikarten, Zusammenfassungen, Übungsaufgaben und Altklausuren für deinen financial markets Kurs an der Tshwane University of Technology zu.

TESTE DEIN WISSEN
Define certificates of deposit 
Lösung anzeigen
TESTE DEIN WISSEN
  • Are certificates that are issued by large. Commercial banks and other depository institutions as a short term source of funds
  • Offers premium above treasury bills yields to compensate for less liquidity and safety 
  • Premiums are higher during recession 
  • Premiums also reflect a market perception about safety of financial systems 
Lösung ausblenden
TESTE DEIN WISSEN
Define money market
Lösung anzeigen
TESTE DEIN WISSEN
  • A market used to facilitate the transfer of short term funds from individuals,corporates with excess funds to the ones with deficit. 
  • It enables participants to maintain liquidity 
  • It allows participants to increase their expenditure.
Lösung ausblenden
TESTE DEIN WISSEN
What are money market securities? 
Lösung anzeigen
TESTE DEIN WISSEN
  • Are debts securities with a maturity of less than 1 year.
  • They are issued in primary markets
Lösung ausblenden
TESTE DEIN WISSEN
Name money market securities 
Lösung anzeigen
TESTE DEIN WISSEN
  • Treasury bills
  • Commercial paper
  • Negotiatable certificates of deposit 
  • Repurchase agreement 
  • Federal funds. 
  • Bankers acceptance
Lösung ausblenden
TESTE DEIN WISSEN
Define commercial paper
Lösung anzeigen
TESTE DEIN WISSEN
  • Unsecured short term security issued by well known, credit worthy firms. 
  • Issued to provide liquidity or finance a firms investment in inventory and accounts receivables.  
  • Is alternative to short term bank loans
Lösung ausblenden
TESTE DEIN WISSEN
Define repurchase rate 
Lösung anzeigen
TESTE DEIN WISSEN
  • Are agreements which the bank sells some of its securities holdings with commitment to repurchase them later 
Lösung ausblenden
TESTE DEIN WISSEN
Define bankers acceptance 
Lösung anzeigen
TESTE DEIN WISSEN
  • Indicates that a bank accepts responsibility for future payments 
  • They are commonly issued for international transactions
  • The bank stamp accepted on the draft which obligates future payment.
  • It is sellable at a higher rate than treasury bills. 
Lösung ausblenden
TESTE DEIN WISSEN
Define national funds
Lösung anzeigen
TESTE DEIN WISSEN
  • Allows depository institutions to effectively borrow or lend short term funds at a national fund rate 
  • It is slightly higher than treasury bills 
  • A lender is subjected to credit risk since it is possible that the bank can default the loan 
Lösung ausblenden
TESTE DEIN WISSEN
Institutions of financial market
Lösung anzeigen
TESTE DEIN WISSEN
  • Commercial banks
  • Finance companies 
  • Money market mutual funds 
  • Insurance companies 
  • Pension funds
Lösung ausblenden
TESTE DEIN WISSEN
Valuation of money market securities 
Lösung anzeigen
TESTE DEIN WISSEN
Price of money market securities should equal the present value of the future cash flow. 
Market price of the money market securities 
Pm= par/(1+k)*n
Change in pm 
^pm=f(^k) and change in ^k=(^Rf,^Rp)

Therefore 
^Pm=(^Rf,^Rp) 
Lösung ausblenden
TESTE DEIN WISSEN
What affects risk premium
Lösung anzeigen
TESTE DEIN WISSEN
  • Economic condition
  • Industry condition
  • Issuers unique condition 
Lösung ausblenden
TESTE DEIN WISSEN
What does positive economic growth does to the market interest rates and money market securities 
Lösung anzeigen
TESTE DEIN WISSEN
It puts upward pressure on market interest rate and downward pressure on money market securities.
Lösung ausblenden
  • 908 Karteikarten
  • 1365 Studierende
  • 8 Lernmaterialien

Beispielhafte Karteikarten für deinen financial markets Kurs an der Tshwane University of Technology - von Kommilitonen auf StudySmarter erstellt!

Q:
Define certificates of deposit 
A:
  • Are certificates that are issued by large. Commercial banks and other depository institutions as a short term source of funds
  • Offers premium above treasury bills yields to compensate for less liquidity and safety 
  • Premiums are higher during recession 
  • Premiums also reflect a market perception about safety of financial systems 
Q:
Define money market
A:
  • A market used to facilitate the transfer of short term funds from individuals,corporates with excess funds to the ones with deficit. 
  • It enables participants to maintain liquidity 
  • It allows participants to increase their expenditure.
Q:
What are money market securities? 
A:
  • Are debts securities with a maturity of less than 1 year.
  • They are issued in primary markets
Q:
Name money market securities 
A:
  • Treasury bills
  • Commercial paper
  • Negotiatable certificates of deposit 
  • Repurchase agreement 
  • Federal funds. 
  • Bankers acceptance
Q:
Define commercial paper
A:
  • Unsecured short term security issued by well known, credit worthy firms. 
  • Issued to provide liquidity or finance a firms investment in inventory and accounts receivables.  
  • Is alternative to short term bank loans
Mehr Karteikarten anzeigen
Q:
Define repurchase rate 
A:
  • Are agreements which the bank sells some of its securities holdings with commitment to repurchase them later 
Q:
Define bankers acceptance 
A:
  • Indicates that a bank accepts responsibility for future payments 
  • They are commonly issued for international transactions
  • The bank stamp accepted on the draft which obligates future payment.
  • It is sellable at a higher rate than treasury bills. 
Q:
Define national funds
A:
  • Allows depository institutions to effectively borrow or lend short term funds at a national fund rate 
  • It is slightly higher than treasury bills 
  • A lender is subjected to credit risk since it is possible that the bank can default the loan 
Q:
Institutions of financial market
A:
  • Commercial banks
  • Finance companies 
  • Money market mutual funds 
  • Insurance companies 
  • Pension funds
Q:
Valuation of money market securities 
A:
Price of money market securities should equal the present value of the future cash flow. 
Market price of the money market securities 
Pm= par/(1+k)*n
Change in pm 
^pm=f(^k) and change in ^k=(^Rf,^Rp)

Therefore 
^Pm=(^Rf,^Rp) 
Q:
What affects risk premium
A:
  • Economic condition
  • Industry condition
  • Issuers unique condition 
Q:
What does positive economic growth does to the market interest rates and money market securities 
A:
It puts upward pressure on market interest rate and downward pressure on money market securities.
financial markets

Erstelle und finde Lernmaterialien auf StudySmarter.

Greife kostenlos auf tausende geteilte Karteikarten, Zusammenfassungen, Altklausuren und mehr zu.

Jetzt loslegen

Die all-in-one Lernapp für Studierende

Greife auf Millionen geteilter Lernmaterialien der StudySmarter Community zu
Kostenlos anmelden financial markets
Erstelle Karteikarten und Zusammenfassungen mit den StudySmarter Tools
Kostenlos loslegen financial markets