Term
| Markets in which funds are transferred from people who have an excess of available funds to people who have a shortage |
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Definition
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Term
| A key factor in producing high economic growth |
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Definition
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Term
| This is a claim on the issuer's future income or assets |
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Definition
| Security- aka financial instrument |
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Term
| Any financial claim or piece of property that is subject to ownership |
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Definition
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Term
| A debt instrument that promises to make payments periodically for a specific period of time |
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Definition
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Term
| The cost of borrowing or the price paid for the rental of funds |
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Definition
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Term
| When economists lump interest rates together, they refer to it as this: |
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Definition
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Term
| Represents a share of ownership in a corporation |
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Definition
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Term
| This is a security that is a claim on the earnings and assets of the corporation |
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Definition
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Term
| Most widely followed financial market in almost every country that has one |
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Definition
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Term
| A higher price for a firm's shares means that it can raise a large amount of _______ |
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Definition
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Term
| Institutions that borrow funds from people who have saved and in turn make loans to others |
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Definition
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Term
| Major disruptions in financial markets that are characterized by sharp declines in asset prices and the failures of many financial and non-financial firms |
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Definition
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Term
| Financial institutions that accept deposits and make loans |
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Definition
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Term
| Delivering financial services electronically |
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Definition
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Term
| That which is generally accepted as payment for goods and services and for the repayment of debts |
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Definition
| Money or the money supply |
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Term
| Total production of goods and services |
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Definition
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Term
| The percent of the available labor force unemployed |
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Definition
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Term
| The upward and downward movement of aggregate output produced in the economy |
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Definition
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Term
| Periods of declining aggregate output |
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Definition
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Term
| The theory that relates changes in the quantity of money to changes in aggregate economic activity and the price level |
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Definition
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Term
| The average price of goods and services |
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Definition
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Term
| A continual increase in the price level |
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Definition
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Term
| The rate of change of the price level, usually measured as a percentage change per year |
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Definition
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Term
| The management of money and interest rates; the regulating of the money supply and/or the financial markets in order to try to achieve desired conditions in the economy |
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Definition
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Term
| What is the U.S's central bank? |
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Definition
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Term
| Involves decisions about government spending and taxation |
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Definition
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Term
| The excess of govt. expenditures over tax revenues for a particular time period |
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Definition
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Term
| Tax revenues exceed govt. expenditures |
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Definition
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Term
T/F
Before each recession there is a large growth in the money supply |
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Definition
True
And on the contrary, there is a collapse in the money supply which results in the recession |
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Term
| When a budget deficit is acquired, how is it handled financially? (Three options) |
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Definition
1. It can be paid for by taxes
2. The government can borrow it by selling Treasury bonds
3. It can monetize the debt (allow inflation to take care of it) |
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Term
| This is where conversion takes place, meaning it is instrumental in moving funds between countries |
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Definition
| The foreign exchange market |
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Term
| The price of one country's currency in terms of another's is determined |
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Definition
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Term
| A change in the exchange rate has a direct effect on American consumers because it affects the ______ of _______ |
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Definition
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Term
| The most commonly reported measure of aggregate output; which is the market value of goods and services produced in a country during the course of the year |
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Definition
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