FIN 3403 Chapter 11: Ch. 11 FIN 3403 study guide
11 Apr 2018
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State banking authorities have sole jurisdiction over state banks without fdic insurance (hold less than . 2% of deposits in commercial banking system. Bank lending has been replaced by lending via the securities markets, with the involvement of a number of different financial institutions. Process of research and developing new products/services that would meet customer needs and prove profitable. Most significant in recent years is the dramatic increase in volatility of interest rates; resulted in Interest rate changes when a market interest rate (usually treasury bill) changes. Seller agrees to provide a certain standardized commodity to the buyer on a specific future date at an agreed-on price. Fds are essentially futures contracts for financial instruments. Their payoffs are linked to (derived from) previously issued securities. Improvement in computer and telecommunications technology (it) Made it easier for investors to acquire information, thus making it easier for firms to issue securities.
