Finance
What is stock?
Ownership share in a company
What is the term used for borrowing to huy a house, land..?
Mortgage loan
The difference between Monetary policy and Fiscal policy
Fiscal policy refers to the government's use of spending and taxation to influence the economy, while monetary policy involves the central bank's actions to control the money supply and interest rates.
4 functions of the central bank
Clearing payments, monetary policy, lender of last resort, financial regulation
Liquidity is _____
An ability to convert into cash without a significant loss of value
Currency board is...
Currency board - an institution that issues money backed by a foreign currency
The difference between stock and bond?
Stocks represent ownership in a company, while bonds represent a loan to a company or government, with the promise of interest payments.
Philips curve shows _________
The short-run trade off between inflation and unemployment.
What is dividend?
Payment from a firm to its stockholders
Take it
It's yours
Which financial instrument carries the highest risk?
Stock
What is opportunity cost?
Opportunity cost is the value of the next best alternative that you miss out on when making a choice.
Market equilibrium occurs when ______
Demand equals Supply
Asset-price bubble is _____
Help: Remember about "Tulipmania"
Rapid rise in asset prices that is not justified by changes in interest rates or expected asset income
Cola and pepsi are _______ goods
Substitute goods (alternative)
What is default?
Failure to make payments on debts
The concept of trade-off
A trade-off is a situation where choosing one option means giving up another, recognizing that every decision has both benefits and costs.
What is money demand?
Amount of wealth that people choose to hold in the form of money
The difference between nominal and real interest rate
Nominal interest rates represent the stated rate on a loan or investment, while real interest rates adjust the nominal rate for inflation to reflect the actual return or cost of borrowing in terms of purchasing power.
Whoops, you are not lucky
No point
What is a credit score used to assess?
Creditworthiness
What is implicit cost?
Opportunity cost of firms' resources
Monetary aggregate is .......
Measure of the money supply
What is reserve requirement ratio?
The reserve requirement ratio is the percentage of a bank's deposits that it must hold in reserve, which limits the amount of money a bank can lend out.
What is inflation?
An increase in the price levels of goods and services