Fintech

Ethereum

Designed to provide secure exchanges for any type of transaction

Cryptocurrencies

is a digital currency that uses cryptography to secure the transactions and to control the creation of new unit

Monetary Transmission Mechanisms

1. Traditional- Fed adjusts interest rates to alter Consumption and Investment; 2. Banking-Lending and Balance Sheet Channels- Banks play a special role in overcoming information problems in borrowing and lending; OMO change banks' reserves and multiple expansion/contraction of the money supply is possible. Expansionary Policy: asset and property values increase; with greater household wealth, banks will lend more to consumers because of the increased value in collateral; lower interest rates means higher profits and firm values boosting confidence and investment. 3. Asset Price Channels- lower interest rates boosts stock prices and increase demand for mortgages so house prices rise. So wealth increase as a result which leads to greater spending

Application programming Interface

API stands for 'application programming interface' and is a set of requirements that governs how one application can talk to another

Lags in Monetary Policy (3 types)

Data lag is the delay in getting good quality data; recognition lag- randomness in the data can make it tough to recognize the actual state of the economy; effectiveness lag: how long after implementation before policy takes effect

Lucas Critique

Models used for policy evaluation are large scale, macro based models; evaluations may be seriously misleading if the behavior of persons depends on expectations. When there is a change in the government policy rule, expectations and behaviors may change from that estimated. People in 2008 had never experiences such a meltdown and the policy responses of the Fed/new regulation; Because these policy moves were brand new, unknown how people's behavior would change

Robo-advisors

Provide digital, automatic portfolio balancing based on customer goals

Crowd Funding

Soliciting project funds, business investment, or business loans from members of the public.

Social Lending

also know as peer to peer lending and P2P. "a method of debt financing that enables individuals to borrow and lend money — without the use of an official financial institution as an intermediary."

Fintech

is a new industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing services and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public.

Underbanked

people with no bank account

Cryptography

the art of protecting information by transforming it into an unreadable format, called cipher text

Digital Wallets

usually refers to an electronic device that allows an individual to make electronic commerce transactions.