Financial Institutions and Markets Spring 2011 Dr. Andrew L. H. Parkes Quiz 13 “Bank Management” 卜安吉.

Slides:

Advertisements

Similar presentations

Money, Banks, and the the Central Bank Lecture notes 5 Instructor: MELTEM INCE.

Advertisements

FNCE 4070 – Financial Markets and Institutions

Activity 38 The mechanics of monetary policy. Baseline case Assets Liabilities The FED Treasury Securities Federal Reserve Notes Checkable deposits Loans.

Copyright © 2012 Pearson Prentice Hall. All rights reserved. CHAPTER 17 Banking and the Management of Financial Institutions.

Copyright  2011 Pearson Canada Inc Chapter 13 Banking and the Management of Financial Institutions.

Principles of Macroeconomics Supplement to Chapter 9 How Banks Create Money.

Bob the Goldsmith. AssetsLiabilities + Owners' Equity Gold coins $100,000Demand Deposits $100,000.

Financial Institutions and Markets Fall 2009 Dr. Andrew L. H. Parkes Day 15 “How do financial markets work?” 卜安吉.

Financial Institutions and Markets FIN 304 Dr. Andrew L. H. Parkes Day 8 “How do financial markets work?” 卜安吉.

Financial Literacy Class 2: Net Worth and Banking.

The Balance Sheet of Commercial Banks

Financial Institutions and Markets FIN 304 Dr. Andrew L. H. Parkes Day 8 “How do financial markets work?” 卜安吉.

Financial Institutions and Markets Winter 2009 – FIN 304 Dr. Andrew L. H. Parkes Day 15 “How do financial markets work?” 卜安吉.

Financial Institutions and Markets Winter 2010 – FIN 304 Dr. Andrew L. H. Parkes Day 14 “How do financial markets work?” 卜安吉.

Chapter 19 Practice Quiz Tutorial Money Creation

Ch 9: General Principles of Bank Management

ALOMAR_212_51 Chapter 9 A Banking and the Management of Financial Institutions.

Chapter 17 Banking and the Management of Financial Institutions.

Financial Institutions and Markets FIN 304 Dr. Andrew L. H. Parkes Day 16 “How do financial markets work?” 卜安吉.

FINANCIAL SECTOR 2 Measuring Money and Money Creation.

Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.

13 CHAPTER Money, the Price Level and Inflation © Pearson Education 2012 After studying this chapter you will be able to:  Define money and describe.

1 Chapter 15: Multiple Deposit Creation and the Money Supply Process.

1 Chapter 9 Commercial Banking ©Thomson/South-Western 2006.

How Banks and Thrifts Create Money Most transactions are “created” as a result of loans from banks or thrifts. Chapter demonstrates the money- creating.

CONTEMPORARY ECONOMICS© Thomson South-Western 17.1 How Banks Work SLIDE 1 Money Creation, the Federal Reserve System, and Monetary Policy How Banks.

Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. The Business of Banking.

How Banks & Thrifts Create Money Chapter 14. Introduction ► Most transaction accounts are created as a result of loans from banks or thrifts ► This chapter.

Fractional Reserve Banking How Banks “Create” Money.

Chapter 15Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved 1 ECON Designed by Amy McGuire, B-books, Ltd. McEachern.

Copyright McGraw-Hill/Irwin, 2005 Balance Sheet of a Commercial Bank Formation of a Commercial Bank Multiple Deposit Expansion Process The Monetary.

Balance sheet as at 01/04/11 $000$000$000 Fixed assets 500 Current assets: Stock 50 Debtors 150 Cash

The Money Supply and the Banking System Outline: What counts as money? Measuring the money stock Financial intermediaries The typical bank balance sheet.

Money Creation Chapter 15 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent.

BANKING.  Banking is a combination of businesses designed to deliver the services  Pool the savings of and making loans  Diversification  Access to.

Alomar_111_MCP1 Money Creation Process. Alomar_111_MCP2 A person opens a checking account at bank (A) with (KD100) in cash. This rises the liability of.

Copyright © 2000 Addison Wesley Longman Slide #17-1 Chapter Seventeen THRIFTS: SAVINGS AND LOANS AND CREDIT UNIONS.

Chapter Seventeen The Near Banks Copyright © 2004 Pearson Education Canada Inc. Slide 17–3 Near Banks Trust Companies Mortgage Loan Companies Credit.

Money Creation Chapter 33 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent.

Lecture notes Prepared by Anton Ljutic. © 2004 McGraw–Hill Ryerson Limited Money and Banking CHAPTER SEVEN.

Principles of Macroeconomics FALL 2011 Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” Day 8 卜安吉.

TM 13-1 Copyright © 1998 Addison Wesley Longman, Inc. What is Money? Money is any commodity or token that is generally acceptable as the means of payment.

Financial Intermediaries Act as the go-between for borrowers and lenders Take deposits from households and business and make loans to other households.

Chapter 15: The Money Supply Process and the Money Multipliers.

Bank Balance Sheets Assignment. 1.The maximum possible loan is $5000. Required reserves =.1 x $150,000 = $15,000 (reserve requirement x demand deposits)

THE MONEY MULTIPLIER The money multiplier shows us the impact of a change in demand deposits on loans and eventually the money supply. The money multiplier.

Creating Money © 2012 McGraw-Hill Ryerson Limited8- 1 LO4 Assets What a company owns or what is owed to it Liabilities What a company owes Net Worth Total.

Money Definition Uses Medium of exchange Unit of Account (“numeràire”) Store of value Measuring money (M1, M2, …)

McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 12 Depository Institutions: Banks and Bank Management.

Financial Institutions and Markets FIN 304 Dr. Andrew L. H. Parkes Day 15 “How do financial markets work?” 卜安吉.

How Banks Create Money Please listen to the audio as you work through the slides.

Alomar_111_201 Chapter 14: Money Creation. Alomar_111_202 How commercial banks can create checkable deposits and issue loans? By this, money is created!

Fractional Reserve Banking When banks hold only a small portion of deposits to cover potential withdrawals and then loans the rest of the money out. If.

Money and Banking Lecture 24. Review of The Previous Lecture Banking Types of Banking Institutions Commercial Banks Savings Institutions Credit Unions.

MACRO: Unit 3 Review – Double Bb

Money Creation Chapter 32.

Please listen to the audio as you work through the slides

T Accounts: Demand Deposits and Money Creation?

Banking and the Management of Financial Institutions

Chapter 9 Banking and the Management of Financial Institutions

Accounting Equation Mr. Chan starts a business The owner.

Depository Institutions: Banks and Bank Management

Banking and the Management of Financial Institutions

Banking and the Management of Financial Institutions

How Banks and Thrifts Create Money

CAPITAL Defination Methods of Obtaining Capital

Banks and the Money Supply

32 Money Creation Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Banking and the Management of Financial Institutions

Banking and the Management of Financial Institutions

Presentation transcript:

Financial Institutions and Markets Spring 2011 Dr. Andrew L. H. Parkes Quiz 13 “Bank Management” 卜安吉

May 12, 2011Principles of Macroeconomics, Quiz 132 Bank Management Liquidity Management Asset Management Liability Management Bank Capital Management

May 12, 2011Principles of Macroeconomics, Quiz 133 Bank Management What are they? Deposits are … List the four major Assets and Liabilities of any Bank/Savings or Credit Union Institution

May 12, 2011Principles of Macroeconomics, Quiz 134 Bank Management What are they? Deposits are … Two types of deposits Borrowing Loans Reserves – two types Bank Capital – Equity or Net Worth

May 12, 2011Principles of Macroeconomics, Quiz 135 Bank Management Show the balance sheet of the Third Savings Bank. The bank has $120,000 in checkable deposits, $250,000 in time deposits, is borrowing $30,000, has $45,000 in bank capital, a 12 % required reserve ratio as well as $340,000 in loans and $80,000 in securities. What is the amount of excess reserves?

May 12, 2011Principles of Macroeconomics, Quiz 136 Bank Management b) Now using the prior balance sheet, show what happens to this bank if there is a deposit outflow of $5,000.

May 12, 2011Principles of Macroeconomics, Quiz 137 Bank Management c) Now show what happens to this bank if there is an additional deposit of $8,000 is made. How much will deposits in the banking system increase by? What is the money multiplier?

May 12, 2011Principles of Macroeconomics, Quiz 138 Bank Management What is the correct level of ownership? More owners – more capital and larger potential assets. The more owners, the more conflicts the smaller ROE! … ? d) What is the percentage of bank capital? What is the requirement?