Lesson Flashcards: Banks

A marketplace where a firm’s securities, such as stocks and bonds, are traded

Generally government-owned banks that lend money only to firms working in a designated field, such as agriculture, industry, or real estate, to boost the growth of specific sectors

The possibility that borrowers would not be able to fulfill their debt obligations

Banks that perform all of their activities over the Internet without having physical buildings for customers to walk into

Banks that act purely as intermediaries between investors and firms in the financial market

One centralized national agency, a financial institution with authority over a large number of monetary issues, from monetary policy to operating as the government’s bank

A system that ties the value of a nation’s currency to the amount of gold held in that nation’s reserves

An entity that serves as a middleman in financial tansactions, such as a bank

The process used by commercial banks to reduce the amount of default risk they are exposed to in a specific sector by distributing loans across a wide variety of sectors

The flow of money directly between a lender and a borrower without going through a financial intermediary