The cashless transfer of payments. US Federal act stipulating the separation of commercial and investment banking. Introduced in 1931 following the 1929 stock market crash . The aim is to provide institutional investors with an efficient, transparent form of securities administration. Term in an agreement that certain payments must be effected in gold or gold coins.
Some gold coins are still valid as legal tender.
In practice, however, all gold coins are traded at their market value, which is subject to continual fluctuations. A principle which states that the maturities of the loans granted by a bank should be congruent with, or match, the maturities of the deposits used to finance such loans. A form of gold standard where a country using it has neither a gold currency in circulation nor reserves held in gold for external transactions, but instead keeps its reserves mostly in the currency and securities of another country which is on the gold standard. Both sterling and dollars have been reserve currencies. The right to buy or sell a specified amount of gold bullion at a stipulated price on the option expiration day.