Show:
Terms 1
Terms 2
Components of the Graph
Saving V. Investment
Deficit v. Surplus
100
What is Financial Markets
financial institutions where savers directly provide funds to borrowers - a bank
100
NASDAQ NYSE
Where would you buy stocks?
100
What does 'S' mean?
Savings
100
Your family takes a loan out to buy a new house
investment
100
______ is an excess of government spending over tax revenue
deficit
200
I O U (earning money from interest)
What is a bond?
200
Bank Mutual Funds
What are financial intermediaries?
200
What does 'D' stand for?
investments
200
Your friend puts away 20% of his net income in a bank
Savings
200
an excess of tax revenue over government spending
What is a surplus
300
buying part of a ownership in a component
What is a stock?
300
diversified set of investments
What is a mutual fund?
300
equilibrium
What is found at the intersection of the graph
300
Your company invests in new work vehicles
investment
300
budget deficit
What shifts the graph to the left
400
process in which people take their money to the banks, banks loan money out, but people can withdraw their money at any time
What is financial intermediation
400
where there is no trade with other countries
What is a closed economy?
400
Loanable funds
What term is on the x-axis
400
Your parents put away money into their 401K over a period of 20 years
Saving
400
This happens to the graph when the equilibrium shifts to the left
equilibrium interest rate rises
500
What term is on the y axis?
Interest rate