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A/An _____ is a claim on the issuer’s future income or assets.
Security
_____ are any financial claim or piece of property that is subject to ownership.
Assets
A/An _____ is a debt security that promises to make payments periodically for a specified period of time.
Bond
A/An _____ is the cost of borrowing or the price paid for the rental of funds.
Interest rate
What are 2 types of interest rates?
Mortgage interest rates and car loan rates
A/An_____ is a share of ownership in a corporation.
Stock
The _____ is where shares of stock are traded.
stock market
A day when the United states experienced the largest one-day percentage drop in stock market history is known as _____.
Black Monday
_____ are institutions that borrow money from people who have saved and lend it out.
Financial intermediaries
_____ are major disruptions in financial markets characterized by sharp declines in asset prices and the failure of numerous financial and nonfinancial businesses.
Financial crises
_____ are financial institutions that accept deposits and make loans.
Banks
_____ is the development of new financial products and services.
Financial innovation
Financial innovation has resulted in significant advances in information technology such as _____, the ability to deliver financial services electronically.
e-finance
_____ is defined as anything that is generally accepted as payment for goods or services or for debt repayment.
Money
_____ is the total production of goods and services.
Aggregate output
The upward and downward movement of aggregate output produced in the economy is known as _____.
Business cycles
_____ are periods of declining aggregate output.
Recessions
The _____ theory relates the quantity of money and monetary policy to changes in aggregate economic activity and inflation.
Monetary theory
The average price of goods and services in an economy is called the _____.
Price level
_____ is a continual increase in the price level and it can affects individuals, businesses, and the government.
Inflation
The _____ is the rate of change of the price level.
Average inflation rate
The _____ policy is the management of money and interest rates.
Conduct of monetary policy
The _____ policy deals with decisions about government spending and taxation.
Fiscal policy
A/An _____ is the excess of government expenditures over tax revenues for a particular time period.
Budget deficit
A/An _____ occurs when tax revenues exceed government expenditures.
Budget surplus
The _____ is where funds are transferred from one country to another.
Foreign exchange market
The _____ is the price of one country’s currency in terms of another’s.
Foreign exchange rate
_____ is the market value of all final goods and services produced in a country during the course of the year.
Gross domestic product
The total income of factors of production from producing goods and services in the economy during the course of the year is known as _____.
Aggregate income
When the total value of final goods and services is calculated using current prices, the resulting GDP measure is known as _____.
Nominal GDP
GDP measured with constant prices is known as _____ GDP.
Real
What are the 3 methods of measuring aggregate price level in economic data?
GDP deflator; PCE deflator; CPI
Which method of measuring aggregate price level is found by dividing the nominal GDP by the real GDP?
GDP deflator
Which method of measuring aggregate price level is found by dividing the nominal personal consumption expenditures (PCE) by real PCE?
PCE deflator
The _____ is measured by pricing a “basket” of goods and services bought by a typical urban household.
Consumer price index (CPI)
A/An _____ is the percentage change in a variable.
Growth rate
The _____ is the growth rate of the aggregate price level.
Inflation rate
Note
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