US role of financial systems Free Essay, Term Paper and Book Report
Role of US Financial Systems Paper
Dustin C. Shumway
FIN 475 Finance
Greg Stanley
07/15/2007
Many sources of capital are available for businesses with good potential. However, there is no substitute for putting financial assets on the line in starting your own business. Securing capital for any business will require well-developed business plans, financial projections and knowledge of sources of financial support. However, like any small businessperson, commercial lenders are also in business for profit.
Total Capital - Bank supervisor's measure of a bank's qualifying capital in computing its risk-based capital reserves. Total capital is measured as follows: Tier 1 equity capital (common stock and qualifying preferred stock), plus Tier 2 capital (reserves for loan losses, subordinated debt, and preferred stock not counted as Tier 1 capital).
Short Term Capital - a residual category in the balance of payments that includes financial assets of less than one year such as currency, deposits, and bills.
Long Term Capital - a residual category in the balance of pa......
Word Count: 1748
Page Count: 6.9 (250 words a page / double spaced)
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