The Financial Sector and the Macroeconomy (Edexcel A-Level Economics A): Flashcards

Banks, building societies & institutions providing financial services

Ratio of liquid assets to total assets

London Interbank Offered Rate - daily average on interbank loans

Sale & repurchase agreements that act like short-term loans

Long-term loans for house purchase, secured against property

Bundling & selling assets to turn future cash flows into securities

Ratio of bank's capital to value of its risk-weighted assets

Banks taking excessive risk, expecting bailout if 'too big to fail'

Markets for contracts based on future delivery, minimising risk

Risky mortgages where households may default on debts