Mini Midterm (Ch. 26) Flashcards

(13 cards)

1
Q

Financial systems

A

the group of institutions in the economy that help to match one person’s saving with another person’s investment

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2
Q

Financial markets

A

financial institutions through which savers can directly provide funds to borrowers

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3
Q

Bond

A

a certificate of indebtedness

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4
Q

Stock

A

a claim to partial ownership in a firm

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5
Q

Financial intermediaries

A

financial institutions through which savers can indirectly provide funds to borrowers

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6
Q

Mutual fund

A

an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds

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7
Q

National saving

A

the total income in the economy that remains after paying for consumption and government purchases

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8
Q

Private saving

A

the income that households have left after paying for taxes and consumption

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9
Q

Public saving

A

the tax revenue that the government has left after paying for its spending

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10
Q

Budget surplus

A

an excess of tax revenue over government spending

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11
Q

Budget deficit

A

a shortfall of tax revenue from government spending

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12
Q

Market for loanable funds

A

the market in which those who want to save supply funds and those who want to borrow to invest demand funds

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13
Q

Crowding out

A

a decrease in investment that results from government borrowing

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