Cash items in process of collection, 402
Cashless society, 463
Cash management accounts, 554, 558
Casualty (liability) insurance, 524–25. See
also property and casualty
insurance
Cato Institute, 535
Cayman Islands, 484, 485
Cease and desist orders, 433
Central Bank of Argentina, 384
Central banks, 191–212
accountability of, 239
asset-price bubbles and, 243–45
behavior of, 207–8
defined, 6
domestic currency/sale of foreign
assets and, 375
establishment of, 456
foreign exchange interventions by,
374–78
independence of, 202, 207, 211, 212
inflation and, 211, 233
inflation targeting and, 237–42
monetary policy and, 6–7, 191
monetary policy instruments,
246–48, 250
price stability and, 236–37
resistance to, 192
sterilized foreign exchange
intervention by, 377–78
unsterilized foreign exchange
intervention by, 377
Centralized power, 192
CEOs, 563
Certainty equivalent, 514
Certificates of deposit (CDs),
400–401, 574
Cessna, 525
Ceteris paribus, 68, 77
Chaebols, in South Korea, 185–86
Chancellor of the Exchequer, Great
Britain, 206, 207
Charles Schwab Corp., 555
Chartering, 433–34
Chase Manhattan Bank, 478
Checkable deposits
bank operations and, 399–400, 403–5,
409–10
defined, 28
limits on interest paid on, 465–66
rate-sensitive, 574
required reserves on, 228, 466
Checks, for money market mutual
funds, 30
Chemical Bank, 478
Chicago Board of Trade, 19, 459, 594, 597
Chicago Mercantile Exchange, 597
Chile, 237
China, 154, 389–90
Chinese yuan (renminbi), 389–90
Chrysler Credit, 269
Circuit City, 556
Cisco Systems, 559
Citibank, 267, 388, 439, 478
Citicorp, 480
Citigroup, 230, 259, 556
Class B shares, 502
Class C shares, 502
“Clawbacks,” 450
Clinton, Bill, 203, 263
Closed-end mutual funds, 494
Closing, for residential mortgages, 325
Coca-Cola, 310
Coinsurance, 529
Collateral
adverse selection and, 144–45
compensating balances, 572
credit risk management and, 571–72
debt contract and, 149
defined, 137, 144
in developing countries, 152
for mortgages, 327–28
restrictive covenants and, 150
for secured bonds, 291–92
Collateralized debt, 137
Collateralized debt obligations (CDOs),
171, 338, 340
Collateralized mortgage obligation
(CMO), 338
Colosio, Luis, 186
Commercial banks, 27t, 28t. See also banks
branching restrictions, 33, 437, 474–75
commercial paper and, 270
decline of, 469–72
defined, 28
Glass-Steagall Act and, 544
history of, 454–56
income statement, 418t
industry structure, 473–75
largest, 473t
money markets and, 258–59
mortgages held by, 334f
numbers of, 473, 475–76, 475f
securities firms and, 558
size distribution, 473t
Commercial paper, 29, 268–71
asset-backed, 270–71
defined, 268, 464
direct placement of, 269
Federal Reserve and, 230
financial crisis of 2007–2009 and,
270–71
history of, 268–69
interest rates, 273f
markets, 269–70, 276t, 464
return on, 269f
terms and issuance, 268
volume outstanding, 270f
Commercial Paper Funding Facility
(CPFF), 230
Commissions
contingent, 526
insurance agents, 517
insurance brokers, 526
securities brokers, 307, 501
Commodities Futures Trading
Commission (CDTC), 31t, 597
“Commodities,” Wall Street Journal, 594
Commodity Futures Modernization Act of
2000, 293–94, 530
Commodity Futures Trading Commission
(CFTC), 606
Common stockholders, 303
Common stocks. See also stocks
conversion of bonds to, 290
defined, 3, 303
over-the-counter trading of, 19
preferred stock vs., 303–4
raising funds with, 18
valuation of, 307–11
Communication
by Federal Reserve, 209
inflation targeting and, 238
Community banks, 478–79
Community Reinvestment Act (CRA),
198, 436
Compensating balances, 572
Compensation, regulation of, 450
Competition restrictions, 33, 436–38
Competitive bidding, 263
Competitive Equality in Banking Act
(CEBA) of 1987, 441t
Complexes, 494
Compton, Karl, 560
Comptroller of the Currency, 428–29
Condominiums, 339–40
Confidential memorandum, 551
Conflicts of interest, 154–60, 161
accounting firms and, 156
credit ratings and, 156–57
defined, 26, 155
Global Legal Settlement of 2002 and,
159–60
insurance companies and, 526
in mutual funds industry, 506–10
Sarbanes-Oxley Act of 2002 and,
158–60
underwriting and investment banking
and, 155–56
Con men, 128
Connelly, James, Jr., 507
Consols, 44–46
Constant growth model, 309–10, 313
Consulting, 156
Consumer Financial Protection
Bureau, 448
Consumer loans, 569–70
Consumer price index (CPI)
inflation and, 241n
Social Security and, 536
I-4
Index
