Economics Part2 Flashcards
(18 cards)
What is the market?
The mechanism that brings buyers and sellers together so prices are fixed and quantities bought or sold are determined.
What is a financial market?
The market in which financial securities are traded.
What is a money market?
A market that provides for short-term deposits, loans, and investments.
What is an exchange market?
The international market where the currency of one country is exchanged for another country’s currency.
What is a capital market?
A market that provides for long-term deposits, loans, and investments.
What is a product market?
The market in which goods and services are traded.
What institution is the key player in the money market in South Africa?
The South African Reserve Bank.
What institution is the key player in the capital market in South Africa?
Johannesburg Stock Exchange.
What do national accounts consist of?
The accounting records of a country’s total production, income, and expenditure.
What are intermediate goods and services?
Goods and services that are used as inputs to produce other goods and services.
What occurs during double counting?
When intermediate products are irregularly added to final products.
What is gross national income?
The total remuneration for the factors of production received by people of South African nationality.
Fill in the blank: The _______ is the market in which financial securities are traded.
[financial market]
True or False: The Johannesburg Stock Exchange is a key institution in the money market.
False
Fill in the blank: The _______ consists of the accounting records of a country’s total production, income, and expenditure.
[national accounts]
