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ECO 315: The Payments System, Financial Markets and Financial Institutions Review

Horizontales
When money is used to quote prices and record debt
Instruments whose value comes from the behavior of an underlying instrument.
Securities and Exchange Commission
Uses pre-paid minutes as a form of mobile money
Issued Europe's first paper money
Prompted the movement away from using the gold standard
Used to pay for online purchases acting as a 3rd party
Could be used to bring trading to a halt if the market is extremely volatile
When firms attempt to deleverage to cover losses and prices fall causing more losses
A bundled asset where a large number of mortgages together into a pool and shares are sold
Agreements to exchange two particular cash flows at a later date
Overcomes potential costs of complexity when it comes to financial instruments
_______ finance occurs when the financial institution serves as the middleman.
Will allow you to build credit history
Gives the holder the right to buy or sell a certain amount of an asset at a pre-determined price and time
The use of borrowing to finance part of the investment
Verticales
A flow of earnings over time
An instruction to the bank to take funds from your account and transfer them to another account
Decentralized secondary markets where dealers are ready to buy and sell securities electronically
The order is executed at the most favorable price currently available
One form of wealth that also stores value
The heart of the payments system
The various measures of money
Automatic trading where computers are programmed to follow a certain set of instructions to trade at a faster pace
Requires a "double coincidence of wants"
Works like a check and the funds are taken immediately
What can be used in place of currency?
M2 was a useful tool for tracking ________
These contracts allow a person to transfer risk
Provides the information needed to ensure resources are allocated to their best uses
A title for money because the value comes from government decree