PHYSICS 102 Lecture Notes - Lecture 18: Multilateral Investment Guarantee Agency, Savings Account, Money Creation
Document Summary
Is able to categorize banks: knows the history / categories of money, knows the different banking mandates, knows the basics of monetary policy. Money evolved as : commodity money (mostly gold & silver, commodity backed money (bills convertible into (mostly) gold & silver, fiat money (value derived from its official status as means of exchange by means of government fiat) General tasks: personal loans and mortgages, savings account, checking account, financial planning for the wealthy (private banking, investment banks (e. g. goldman sachs, j. p. morgan chase) No typical personal banking services such as checking or savings accounts. Accepting deposits and granting loans to businesses. Contrasts with retail banks: size of loans and interest rates. Distinction between commercial & investment bank is blurred due to abandonment of. Glass-steagall act in favor of the gramm-leach-bliley act: central banks. Insulated from politics to a high degree: universal banks (hybrids, development banks.
