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Finance
GDP
Business Cycles and Economic Growth
Money
Banking
100
What is the claim of the borrower's property?
financial asset
100
What is the study of the economy as a whole?
macroeconomics
100
What is the sum of all the supply in the economy?
aggregate supply
100
What is an exchange of goods and services without using money?
barter
100
What does FDIC stand for?
federal deposit insurance corporation
200
What is a collection of different stocks that is professionally managed?
mutual fund
200
What is the thing that states GDP in terms of current value of goods and services?
nominal GDP
200
What word defines when real GDP goes up over a period of time?
economic growth
200
What is medium of exchange?
It is the means through which goods and services can be exchanged
200
What does national bank mean and what is our national bank?
National bank is licensed by the national government and our national bank is the federal reserve
300
What is the difference between a primary market and a secondary market?
primary market is the IPO (initial price offering) and financial assets bought directly fromt the issuer and the secondary market are resold financial assets
300
What does GDP stand for? What does it mean?
gross domestic product. it is the market value of all the final goods and services PRODUCED in a nation within a given time period
300
What are the stages of the business cycle?
1. expanison 2. peak 3. contraction 4. trough
300
What is the difference between store of value and standard of value?
standard of value is determining the economic worth in the exchange process whereas the store of value is something that holds its value over time
300
What do people tend to do when buying a house?
Take out a mortgage which is asking for a loan for real estate
400
What are the four type of bonds and what do they mean?
1. corporate bonds: businesses 2. treasury bonds: keep federal government spending 3. municipal bonds: state and local government spending 4. junk bonds: high risk and high yield corporate bonds
400
What is not included with government spending? Where are they included instead?
transfer payments (social security and unemployment) because they are included with consumption
400
What are the factors that affect economic growth?
1. natural resources 2. human resources 3. capital 4. technology and innovation
400
What are the types of things that representative money gets backed by?
gold or silver
400
What is the difference between a credit card and a debit card?
A credit card you are spending using future money whereas a debit card you are spending using the money you have now in your checking account
500
what is the difference between a capital market and a money market?
capital market: long term investments money market: short term investments
500
What is the formula to finding GDP? What does each part of the formula mean?
GDP = C + I + G + N c: consumption - which is spending of all households on durable/nondurable goods and services i: investments - which is money spent by firms and are either fixed investments (new construction and associated capital goods) or inventory investments (unsold goods) g: government spending - which is government expenditures at all levels on goods/services n: net exports - goods/services made in the USA but sold in other countries (net exports = USA exports - USA imports)
500
What are the reasons that business cycles happen?
1. business decisions: demand slump, new tech 2. changes in interest rates: low interest rates are better 3. consumer expectations 4. external issues
500
What are the properties of money?
1. physical -durable -portable -divisible -uniformity 2. economic -scarcity -acceptability
500
What does the FDIC do?
It is the government that insures customer deposits if a bank happens to fail