Chapter 5 - The Financial Sector

0.0(0)
studied byStudied by 2 people
linked notesView linked note
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/8

flashcard set

Earn XP

Description and Tags

Macroeconomics

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

9 Terms

1
New cards
national savings
A dollar borrowed from ________ is returned to a domestic borrower with interest.
2
New cards
financial system
A well- functioning ________ helps people reduce their exposure to risks.
3
New cards
Transaction costs
________, financial risk, and the desire for liquidity are the three major issues that borrowers and lenders face.
4
New cards
transaction costs
The term ________ refer to the expenses of executing a deal and any of the steps associated with the process.
5
New cards
financial risk
The term ________ refers to the uncertainty about future outcomes that incorporate financial gains and losses.
6
New cards
Loan
________- backed securities are traded on financial markets in a similar manner to bonds.
7
New cards
diversifying
A(n) business owner can reduce the risk of loss by ________ assets, investing in a variety of assets with unrelated (or independent) hazards.
8
New cards
money market
The ________ is in equilibrium at the interest rate rE: the quantity of money demanded by the public is equal to M, which is the quantity of money supplied.
9
New cards
Transaction costs
________, financial risk, and the demand for liquidity are the three major issues confronting borrowers and lenders.