Modern Banking & Financial Markets: Central Banks, Stock Exchanges & Key Indices, Appunti di Inglese

Scarica Modern Banking & Financial Markets: Central Banks, Stock Exchanges & Key Indices e più Appunti in PDF di Inglese solo su Docsity! BANKING Banks offer companies a wide range of services The banking industry isn’t as globalised. Modern banking = over the last 30 years methods of banking have changed dramatically. The widespread use of: ▲ ATM machines ▲ Online banking services. Online banking = is free and secure apps that offer the functions as online banking. Online banking and mobile banking are convenient because they allow costumers to do their banking from home or on the move. Costumers use their smartphones to check balance. The payment is processes like a regular credit/debit card transaction. CENTRAL BANKS A central bank is a financial institution that regulates the size of a state’s money supply. The functions are: • Issues, controls and regulates the supply of money • Designs and enforces policies • Manages public debit • Gives the government financial advice • Manages foreign exchange reserves • Controls the activities of commercial banks • Lands money the commercial banks The European Central Bank is the most important central banks in the world. It is the central bank for financial and administers the monetary policy. THE STOCK EXCHANGE The stock exchange is a financial marketplace. In a stock exchange traders bay and sell documents called securities. The securities are issued by: ♦ Companies (shares and debentures) ♦ Public bodies (bonds) Shares = are equal parts of the capital Debentures = are documents given long – term capital to a company Bonds = are usually issued by public bodies In 2207 the New York Stock Exchanges is the first stock market operator.