Explaining Money & Banking

Index

Aaa bonds, 43–45

Adverse selection problem, 104–105

Argentina’s consumer price index, changes in, 176

Asymmetry information problem, 10, 99, 103–104

adverse selection, 104–105

moral hazard, 105

principal–agent problem, 106

Auto insurance claims, 7, 8

Baa bonds, 43–45

Balance sheets, 108–110, 113–116, 133–136, 151, 153–155, 164, 168, 169, 195, 196

Banking

balance sheets, 110

capital management, 116

change in profit, 113

competition in, 117–121

credit risk, 112–113

diversity management, 115–116

equity, 109

innovation, 117–119

interest rate risk, 113–114

liquidity management, 114–115

liquidity risk, 112–113

management, 111

profitability measurement, 116–117

rate sensitivity management, 116

reward, 116–117

risk measurement, 116–117

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