Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ap macro > Module 22-23 > Flashcards

Module 22-23 Flashcards

1
Q

The price, calculated as a percentage of the amount borrowed, changed by lenders to borrowers for the use of their savings for one year.

A

Interest rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Savings and investment spending are always equal for the economy as a whole

A

Savings-Investment Spending Identity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The difference between tax revenue and government spending when tax revenue exceeds government spending

A

Budget Surplus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The difference between tax revenue and government spending when government spending exceeds tax revenue

A

Budget Deficit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The difference between tax revenue and government spending

A

Budget balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The sum of private savings in the budget balance, it is the total amount of savings generated within the economy

A

National savings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Equal to the total inflow of foreign funds minus the total outflow of domestic funds to other countries

A

Capital inflow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Of a household, is the value of its accumulated savings

A

Wealth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A paper claim that entitles the buyer to future income from the seller

A

Financial asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A claim on a tangible object that gives the owner the right to dispose the object as he or she wishes

A

Physical asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A requirement to pay money in the future

A

Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The expenses of negotiating and executing a deal

A

Transaction costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Uncertainty about future outcomes that involve financial losses and gains

A

Financial risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Individual engages in this by investing in several different assets with unrelated risks

A

Diversification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Asset is this if it can be quickly converted into cash without much loss of value

A

Liquid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Asset is this if cannot be converted into cash without much loss of value

A

Illiquid

17
Q

A lending agreement between an individual lender and an individual borrower

A

Loan

18
Q

Occurs when a borrower fails to make payments as specified by the loan or bond contract

A

Default

19
Q

An asset created by polling individual loans and selling shares in that pool

A

Loan-backed security

20
Q

An institution that transforms the funds it gathers from many individuals into financial assets

A

Financial intermediary

21
Q

A financial intermediary that creates a stock portfolio and then resells shares of this portfolio to individual investors

A

Mutual fund

22
Q

A nonprofit institution that invests the savings of members and provides then with income when they retire

A

Pension fund

23
Q

Sells policies that guarantees a payment to a policyholder’s beneficiaries when the policyholder dies

A

Life Insurance Company

24
Q

A claim on a bank that obliges the bank to give the depositor his or her cash when demanded

A

Bank deposit

25
Q

A financial intermediary that provides liquid assets in the form of bank deposits to lenders and uses those funds to finance borrower’s investment spending on illiquid assets

A

Bank

26
Q

Any asset that can easily be used to purchase goods and services

A

Money

27
Q

Cash held by the public

A

Currency in circulation

28
Q

Bank accounts on which people can write checks

A

Checkable bank deposits

29
Q

The total value of financial assets in the economy that are considered money

A

Money supply

30
Q

An asset that an individual acquires for the purpose of trading for goods and services rather than for their own consumption

A

Medium of exchange

31
Q

A means of holding purchasing power overt time

A

Store value

32
Q

A measure used to set prices and make economic caluculations

A

Unit of account

33
Q

A good used as a medium of exchange that has intrinsic value in other ways

A

Commodity money

34
Q

A medium of exchange with no intrinsic value is guaranteed by a promise that it can be converted into valuable goods

A

Commodity-backed money

35
Q

A medium of exchange whose value derives entirely from its official status as a means of payment

A

Fiat money

36
Q

An overall measure of the money supply

A

Monetary aggregate

37
Q

Financial assets that can’t be directly used as a medium of exchange but can be readily converted into cash or checkable bank deposits

A

Near-moneys

ap macro (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions