ECON 3960 Study Guide - Midterm Guide: Primary Market, Financial Institution, Secondary Market
16 Mar 2018
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Document Summary
Something to do with the 2008 financial crisis. 10 pairs of terms where you must give a significant similarity and a significant difference. Short-term: maturity term is less than a year. Long-term: maturity term is ten years or longer. Intermediate-term: maturity term between one and ten years. Secondary market: a financial market in which securities that have been previously issued can be resold. Liquidity: makes it easier and quicker to sell these financial instruments to raise cash. Foreign bonds: traditional instruments in the international bond market, sold in a foreign country and denominated in that country"s currency. Eurocurrencies: foreign currencies deposited in banks outside the home country. Eurodollars: us dollars deposited in foreign banks outside the united states or in foreign branches of us banks, these short-term deposits earn interest, they are similar to eurobonds. Financial intermediation: the primary route for moving funds from lenders to borrowers. Transaction costs: the time and money spend in carrying out financial transactions.
