Quiz #9 Vocab Flashcards Preview

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Flashcards in Quiz #9 Vocab Deck (18):
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Knowledge about production
Education improves human capital

Human capital

1

Bank accounts that earn compound interest and are FDIC insured

Savings accounts

2

Certificate of deposit
Timed deposit FDIC insured

CD

3

Government IOUs
Pay simple interest payments twice annually

Treasury bonds

4

Pools of Stocks not FDIC insured

Mutual funds

5

Units of ownership in a corporation not FDIC insured

Stocks

6

Bonds issued by firms with shaky credit ratings

Junk bonds

7

Amount of profit paid to shareholders per share per year

Dividends

8

Tax rates go up as income goes down to extract revenue from High wage earners
Ex: income tax

Progressive tax

9

Tax burden is higher on lower incomes than on higher incomes
Ex: social security and Medicare

Regressive tax

10

Property that guarantees repayment of a loan

Collateral

11

Loan for the purchase of a home

Mortgage

12

Being behind on loan payments

Delinquency

13

Refusal or inability to repay a loan

Default

14

Total amount of debt still owed to a lender

Outstanding debt

15

When government borrowing uses up money that could be invested in private businesses

Crowding out

16

Interest rate on money banks lend to one another

Federal funds rate

17

Percentage of deposits banks must keep in the vault

Required reserves