Securities are financial assets that can be traded. Common examples include shares (ownership in a company), bonds, and
Tag: banking
liquidity (economics)
Liquidity describes how quickly and easily an asset can be turned into cash without losing much of its
central bank
A central bank is a national institution that manages a country’s currency, money supply, and interest rates. It
credit creation
Credit creation is the way commercial banks increase the total amount of money in an economy. They do
bank credit multiplier
The bank credit multiplier (also called the money multiplier) measures the maximum amount of new bank deposits that
capital ratio
The capital ratio (also known as the capital adequacy ratio) measures a bank’s financial strength. It compares the
reserve ratio
The reserve ratio (also known as the cash reserve ratio) is the portion of customer deposits that banks
loan (economics)
A loan is a quantity of money taken from a lender or a bank that you must pay
overdraft
An overdraft is a banking service that allows you to spend more money than you have in your
savings account
A savings account is a type of bank account where you keep money that you do not plan