Studied by 2 people
national savings
A dollar borrowed from ________ is returned to a domestic borrower with interest.
financial system
A well- functioning ________ helps people reduce their exposure to risks.
Transaction costs
________, financial risk, and the desire for liquidity are the three major issues that borrowers and lenders face.
transaction costs
The term ________ refer to the expenses of executing a deal and any of the steps associated with the process.
financial risk
The term ________ refers to the uncertainty about future outcomes that incorporate financial gains and losses.
Loan
________- backed securities are traded on financial markets in a similar manner to bonds.
diversifying
A(n) business owner can reduce the risk of loss by ________ assets, investing in a variety of assets with unrelated (or independent) hazards.
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.
Transaction costs
________, financial risk, and the demand for liquidity are the three major issues confronting borrowers and lenders.
Note 
Flashcard (52)