Function of Financial Markets

Function of Financial Markets - 9.) Calculate PV and FV of...

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1.) Function of Financial Markets a. Take 2.) Difference between Debt and Equity markets 3.) Difference in Money Markets and Capital markets a. Implications of owning, selling each type of asset 4.) Asymmetric Information a. Adverse Selection (before) b. Moral Hazard (after) 5.) Categories of Balance Sheet Items a. Assets i. Banks 1. T-Bills 2. MUNIs 3. Loans (biggest profit) ii. Insurance Co iii. Pensions b. Liabilities 6.) Basic idea of regulatory agencies 7.) Functions of Money a. Store of value (terrible) b. Unit of account c. Medium of exchange 8.) Difference in Money market aggregates a. M1 b. M2 c. M3
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Unformatted text preview: 9.) Calculate PV and FV of money 10.) YTM and price of bond i. Relation is inverse for YTM and Price 11.) YTM on discount bond 12.) Know the fischer equation 13.) Demand curve for assets a. Wealth b. Liquidity c. Risk d. Expected Return 14.) Infer bond prices, rate changes, based on events in news a. Shifts in curves 15.) Also know market for money a. Changes by FED, what happens? 16.) Items to know a. Default risk b. Liquidity c. Income tax d. Grading of Assets i. Changes on grade, effects 17.) Theories of the Yield Curve(s)...
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This note was uploaded on 10/20/2008 for the course ECON 4810 taught by Professor Valev during the Spring '08 term at Georgia State University, Atlanta.

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Function of Financial Markets - 9.) Calculate PV and FV of...

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