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

Slides:



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

Macro Chapter 13 Presentation 1. Fractional Reserve System US Banking System Only a portion (fraction) of checkable deposits need to be held as cash in.
ALOMAR_212_61 1- Basic Banking  Banks make profits by selling liabilities (of particular combination of liquidity, risk, size, and return) and using the.
Activity 38 The mechanics of monetary policy. Baseline case Assets Liabilities The FED Treasury Securities Federal Reserve Notes Checkable deposits Loans.
Balance Sheet Workspace Practice Problems. Problem 1 The US Treasury borrows from the nonbank public by selling them US Treasury securities. The nonbank.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Contemporary Economics: An Applications Approach By Robert J. Carbaugh.
Principles of Macroeconomics Supplement to Chapter 9 How Banks Create Money.
Money, Banking, and the Federal Reserve System
Chapter 14: How Banks & Thrifts Create Money Balance Sheet of a Commercial Bank (or Thrift) is a statement of assets & claims on assets that summarizes.
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.
CHAPTER 32 Creation of Money Two Definitions of the Money Supply, January 2005 M1 = $1361 billion Currency Outside banks $710 billion Other checkable.
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.
Financial Institutions and Markets Spring 2011 Dr. Andrew L. H. Parkes Quiz 13 “Bank Management” 卜安吉.
Saunders & Cornett, Financial Institutions Management, 4th edition 1 “It is the ability to foretell what is going to happen tomorrow, next week, next month,
ALOMAR_212_51 Chapter 9 A 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.
Bell Ringer See “Money Creation” Video. Money Creation Chapter 33.
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.
Copyright ©2001, South-Western College Publishing Contemporary Economics: An Applications Approach By Robert J. Carbaugh 1st Edition Chapter 14: Money.
McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 17 The Central Bank Balance Sheet and the Money Supply.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 11 An Introduction to Financial Intermediaries and Risk.
How Banks and Thrifts Create Money Most transactions are “created” as a result of loans from banks or thrifts. Chapter demonstrates the money- creating.
Multiple Deposit Creation and the Money Supply Process
Jump to first page Copyright 2003 South-Western Thomson Learning. All rights reserved. The Business of Banking.
Copyright McGraw-Hill/Irwin, 2005 Balance Sheet of a Commercial Bank Formation of a Commercial Bank Multiple Deposit Expansion Process The Monetary.
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.
5-1 Lecture 5 Multiple Deposit Creation and the Money Supply Chapter 15 pages and Chapter 16 pages
© OnlineTexts.com p. 1 Chapter 14 Econ104 Parks Money and Banking.
Chapter Seventeen The Near Banks Copyright © 2004 Pearson Education Canada Inc. Slide 17–3 Near Banks Trust Companies Mortgage Loan Companies Credit.
Consolidated Balance Sheets 15-2 Problems Consolidated Balance Sheet: All Commercial Banks Assets: Initial Data Lower Discount Rate = 1 Bill new.
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.
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)
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.
Money Ch.11. Money is used to pay for things How did this happen? Trading – currency Money is anything that is generally acceptable in purchasing goods.
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!
Ch 13.Money Creation. A.Balance sheet – statement of assets and claims on assets. 1.Liabilities 2.Net worth -- This chapter shows how commercial banks.
Money and Banking Lecture 24. Review of The Previous Lecture Banking Types of Banking Institutions Commercial Banks Savings Institutions Credit Unions.
© OnlineTexts.com p. 1 Chapter 14 Money and Banking.
Money Creation Chapter 32.
T Accounts: Demand Deposits and Money Creation?
Banking and the Management of Financial Institutions
The Nature and Creation of Money
Accounting Equation Mr. Chan starts a business The owner.
Depository Institutions: Banks and Bank Management
The Federal Reserve System
The Banking System and the Money Supply
Banking and the Management of Financial Institutions
Banking and the Management of Financial Institutions
Chapter 17 The Money Supply Process
How Banks and Thrifts Create Money
32 Money Creation Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Money Creation Chapter 32.
Banking and the Management of Financial Institutions
The Nature and Creation of Money
Presentation transcript:

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

Financial Institutions & Markets, Day 152 Chapter 16: Commercial Banking Which is worth more? By Deposits … RankNameHeadquarters Deposits (billions) 1Bank of AmericaCharlotte, NC$683 2CiticorpNew York, NY$628 3JP Morgan ChaseNew York, NY$584 4WachoviaCharlotte, NC$330 5Wells Fargo San Francisco, CA $308 6Washington MutualSeattle, WA$204 7HSBC HoldingLondon$127 8SunTrust BankAtlanta, GA$122 9U.S. Bancorp Minneapolis, MN $ Royal Bank of Scotland Edinburgh$99

Financial Institutions & Markets, Day 153 Chapter 16: Commercial Banking Which is worth more? By Deposits … Financial Assets of ALL Banks in the USA $ 10,792,690,613,000 Financial Assets of ALL FDIC insured institutions: $ 12,707,112,393,000

Financial Institutions & Markets, Day 154 Chapter 16: Commercial Banking What are they? Deposits are … List the four major Assets and Liabilities of any Bank/Savings or Credit Union Institution

Financial Institutions & Markets, Day 155 Chapter 16: Commercial Banking What are they? Deposits are … Two types of deposits Borrowing Loans Reserves – two types Bank Capital – Equity or Net Worth

Financial Institutions & Markets, Day 156 Chapter 16: Commercial Banking Show the balance sheet of the Third Savings Bank. The bank has $100,000 in checkable deposits, $50,000 in time deposits, $5,000 in bank capital, a 12 % required reserve ratio and $70,000 in loans (and securities). What is the amount of excess reserves?

Financial Institutions & Markets, Day 157 Chapter 16: Commercial Banking How to use more reserves? By Deposits … ? Now using T - accounts show what happens to this bank if they decide that too many reserves are being held in the vault, say $5,000, and the manager loans them out.

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.