Eonomicproblems

Question 1

Business/trade cycle

Answer 1

Periodic fluctuations of national output

Periods of high rapid growth are followed by periods of low growth or decline in national output

Question 2

Exchange rate

Answer 2

The rate at which one national currency exhanges for another

Question 3

Financial instruments

Answer 3

Tradable financial assets such as shares equities bonds foreign currency and bank account deposits

Question 4

Financialisation

Answer 4

Process by which financial markets,institutions and instruments become more significant in an economy

Question 5

Economic gov policy’s aims

Answer 5

High and stable economic growth
Low unemployment 
Low inflation 
Avoid BOP deficit 
Stable financial system