Introduction to Finance

t
currencies, 169
markets, defined, 16, 135
rates, examples, 136
t
risk, management, 143–144
Foreign exchange markets, 135–136
Foreign firms, preferred stock issuance, 
268–269
Foreign ownership
changes, 152–153
increase (public debt securities), 200–201
Foreign securities, 326–327
Foreign stocks, SEC registration, 326
Foreign systems, international banking, 
71–72
Forward contract, 144
Forward exchange rate, defined, 144
Forward rate (FR), defined, 144
Fourth market, defined, 321
Fractional reserve system, defined, 87, 115
Fraudulent behavior, examples, 10
Free cash flow, increase, 181
French Revolution, inflation, 208
Front running, occurrence, 316
Full-bodied money, 132
defined, 28
Full-bodied U.S. coins, examples, 29
f
Full Employment and Balanced Growth Act 
of 1978, 103
Funds transfer, electronic methods, 33
Future cash flows (future CF), 274
Future dividends, knowledge, 287
Futures, 335–336
contracts, 335
defined, 335
U.S. exchanges, 335
t
Future value (FV). 
See also
Annuity
calculation/computation, 220–221, 535–536
defined, 220
determination, compounding (usage), 
221–225
equating, 228–229
interest rate/time period, relationship, 224
f
spreadsheet solution, 222–224
table-based solution, 223
Future value interest factor (FVIF)
example, 224
t
value, location, 232
Future value interest factor of an annuity 
(FVIFA), example, 234
t
Future value of an annuity due (FVAD), 
248–249
Future value of an annuity (FVA), 232–235
Future value of an ordinary annuity (FVA), 
calculation, 233
G
Garn-St. Germain Depository Institutions Act 
of 1982, 58
GDR. 
See
Global depository receipt
Generally accepted accounting principles 
(GAAP)
defined, 389
home country accounting standards, 
differences, 390
t

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INDEX
627
Internal Revenue Code (IRC), 419
International banking
defined, 71
foreign systems, 71–72
International Banking Act (IBA) of 1978, 71
International bond market, national 
boundaries, 260
International business, 151
ethical considerations, 144–145
International components, example 
(2006/2009/2012/2015), 168
t
International finance
development, 131–132
International Fisher effect (IFE), 140
International Monetary Fund (IMF), 97
defined, 132
evolution, 131–132
reserves credit, 169
International monetary system, 39–40, 
131–133
defined, 131
International payment imbalances, 
implications, 168–169
International trade
aids, 150
balances, factors, 152
financing, 145–150
International transactions
balance, 105–106
currency exchange/checkable deposits, 
involvement, 39–40
financing cost, 149–150
goal, balance, 151–153
handling, 151–153
problem, characteristics, 152
Internet
bubble, 185
usage, 484
Interstate banking, regulations (liberalization), 
62
In-the-money, defined, 339
Intradistrict settlement, 96
Intrinsic value, 277
Inventories investment amount, calculation, 
461
Inventory
collateral function, 513
conversion period, calculation, 458–459
loans, 513–514
management, 482–483
period, 458–459
usage, 470
sales increase, impact, 462
t
tracking, 485
turnover, calculation, 430–431
Inventory turnover ratio, 430
Investing cash flows, example, 544–545
Investing decisions, 161
Investing overseas, 142
Investment
activities, cash flows, 544
bank, defined, 52
companies, classification, 358
defined, 4
discounting, example, 227–228
example (2006/2009/2012/2015), 168