FINS1612 Chapter Notes - Chapter 1: European Central Bank, European Debt Crisis, Government Debt
Document Summary
1. 1 financial crisis and the real economy: global financial crisis (gfc) The global financial crisis refers to the financial crisis of 2008 that has been traced to the collapse of the housing market and the consequences of that collapse for the market for the mortgage-related securities: sub-prime mortgages. Loans to borrowers that under assessment standards would not have the capacity to repay: federal reserve. The central bank of the usa: eurozone crisis / sovereign debt crisis. The economic and international financial crisis that followed the gfc, which saw multiple. European governments seek bailouts from the european central bank (ecb) and other stronger european countries. 1. 2 the financial system and financial institutions: financial system. Comprises a range of financial institutions, instruments and markets; overseen by central bank; supervised by prudential regulator: financial instruments. Issued by a party raising funds, acknowledging a financial commitment and entitling the holder to specified future cash flows: flow of funds.
