econ

aggregate income

The total income earned by everyone in an economy over a specific time.

aggregate output

The overall value of all goods and services produced in an economy during a set period.

aggregate price level

An average measure of prices for goods and services in an economy.

asset

A resource owned by someone that can provide future economic benefits.

banks

Institutions that take deposits and give out loans.

bond

A loan made by an investor to a borrower, usually a corporation or government.

budget deficit

When expenses are greater than income.

budget surplus

When income exceeds expenses.

business cycles

The up and down changes in economic activity.

central bank

A main bank of a country that manages monetary policy.

common stock

Ownership shares in a company that come with voting rights.

e-finance

Using electronic means for financial transactions.

Federal Reserve System (the Fed)

The U.S. central bank that regulates the country's financial system.

financial crises

Major disruptions in financial markets.

financial innovation

New tools or technologies that improve financial services.

financial intermediaries

Institutions that connect savers with borrowers.

financial markets

Places where financial securities are traded.

fiscal policy

Government strategies for spending and taxing.

foreign exchange market

A global market for trading currencies.

foreign exchange rate

The value of one currency compared to another.

gross domestic product (GDP)

The total value of all goods and services produced in a country.

inflation

The rate at which prices for goods and services rise.

inflation rate

The percentage increase in price levels over time.

interest rate

The cost of borrowing money, shown as a percentage.

monetary policy

Central bank actions to control the money supply and interest rates.

monetary theory

The study of how money affects the economy.

money (money supply)

The total amount of money available in an economy.

recession

A period of economic decline with falling GDP.

security

A financial asset representing ownership or credit.

stock

A type of security that represents ownership in a company.

unemployment rate

The percentage of the labor force that is without a job.