Financing investment
What is financing investment?
Providing capital.
What is risk sharing?
Loss distribution.
What is a financial crisis?
Market collapse.
What supports economic growth?
Financial systems
What is an open economy?
Global interaction.
Who provides loans to businesses?
Commercial banks.
Which industry mainly shares risk?
Insurance industry.
What happened in 2008?
Banking crisis.
Who creates innovations?
Entrepreneurs
What connects currencies internationally?
Exchange rates.
What do companies issue to raise money?
Stocks, bonds.
What reduces investment risk?
Diversification.
What usually increases during crises?
Unemployment rates.
What increases productivity?
Technology investment.
What crosses borders economically?
Goods, capital.
What affects investment spending strongly?
Interest rates
What market helps spread risk?
Stock market.
What may fail during crises?
Financial institutions.
What does growth improve?
Living standards.
What does FDI mean?
Foreign investment
What is capital formation?
Asset creation
What is hedging?
Risk protection
What can governments provide during crises?
Bailout packages
What creates new jobs?
Business expansion.
What encourages international trade?
Trade agreements