The principal and interest What is the true definition of Compound interest? Main part amount you are borrowing

Too Big to Fail?

Too big to fail (TBTF) doctrine that large financial institutions facing failure must be rescued to protect the financial system

Potential benefits - economies of scale, from banking consolidation. Many economists believe, however, that consolidation also poses dangers to the broader economy. Their reasoning centers on the linkages among banks and other financial institutions*

What is the potential benefit from banking consolidation?

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  Potential benefits - economies of scale, from banking consolidation. Many economists believe, however, that consolidation also poses dangers to the broader economy. Their reasoning centers on the linkages among banks and other financial institutions*
  

What is Eurodollars?

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  Eurodollars - deposits of dollars outside the United States
  

What is a financial holding company?

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  Financial holding company (FHC)
  
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  The Gramm-Leach-Bliley Act of 1999, which repealed Glass-Steagall, allows for the creation of financial holding companies (FHCs):
  

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  conglomerate that owns a group of financial institutions
  
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  A financial holding company can own both commercial banks and securities firms
  
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  Others merged with existing securities firms and insurance companies
  

Find the incorrect reason for consolidation across banking and finance businesses:

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  Reasons for consolidation across businesses:
  

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   similar to those for geographic expansion.
   
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   Empire building is a possible motive.
   
3. 
   So is diversification: with a mix of businesses, FHCs don’t lose too much if one business does badly.
   
4. 
   A financial holding company also benefits from economies of scope: it reduces costs by combining different activities.
   

What is Securitization?

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