Finance
Chapter 15 asset management The acquisition of assets that have a low rate of default and diversification of asset holdings to increase profits. 408 automated banking machine (ABM) An electronic machine that combines in one location an ATM, an Internet connection to the bank's website, and a telephone link to customer service. 426 automated teller machine (ATM) An electronic machine that allows customers to get cash, make deposits, transfer funds from one account to another, and check balances. 426 balance sheet A list of the assets and liabilities of a bank (or firm) that balances: total assets equal total liabilities plus capital. 401 capital adequacy management Managing the amount of capital the bank should maintain and then acquiring the needed capital. 408 credit risk The risk arising from the possibility that the borrower will default. 408 deposit outflows Losses of deposits when depositors make withdrawals or demand payment. 408 deposit rate ceilings Restrictions on the maximum interest rates payable on deposits. 430 discount loans A bank's borrowings from the Federal Reserve System.