finace - Bond ladder Purchase bonds in multiple industries,...

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1. Bond ladder 1. Purchase bonds in multiple industries, with different maturity rates 1. Decrease interest rate risk by holding both short-term and long term bonds 2. Decrease exposure to a single industry 2. Money 1. Store of value 2. Medium of exchange 3. Measure of value 3. Characteristics of money 1. Divisibility 2. Portability 3. Stability 4. Durability 5. Difficultly to counterfeit 6. Acceptability 4. The future of money 1. Smartcards 2. Pay-by-phone 5. Money supply 1. How is the supply of money measured? 1. The Federal Reserve System 1. Board of Governors (7 members and chairman) 2. Federal Reserve Banks (12) 3. Member Banks
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2. Panics 1. 1893 Panic 2. 1907 Panic 3. 1913 Panic 3. M1-most liquid 1. Cash, demand deposits (checking account), traveler’s checks 4. M2- is M1 plus 1. CDs, savings accounts, money market accounts, mutual funds 2. Too much money (value goes down) 1. Inflation 2. Dollar value falls 3. Expensive imports 3. Too little money (value goes up) 1. Deflation 2. Dollar value rises
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This note was uploaded on 04/16/2008 for the course BCOR 1010 taught by Professor Latier,jef during the Fall '07 term at Colorado.

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finace - Bond ladder Purchase bonds in multiple industries,...

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