Money/Banking
Item of value that a firm or an individual owns
What is an asset?
When depositors go to the bank to withdraw their deposits for fear that otherwise they would be lost.
What is a bank run?
The first sale of shares of stock by a firm to outside investors
What is an initial public offering (IPO)?
When government spending and taxes are equal
What is a balanced budget?
6th in the syllabary, this student is practiced in the subject of money and banking.
Who is "F"?
A narrow definition of the money supply that includes currency and checking accounts in banks.
What is M1 money supply?
An institution which conducts a nation’s monetary policy and regulates its banking system
What is a central bank?
A measure of the uncertainty of that project’s profitability
What is risk?
A tax based on the pay received from employers; the taxes provide funds for Social Security and Medicare
What is a payroll tax?
This student doesn't talk that much in class, but their, nickname says otherwise.
Who is Gabby (Gabriela)?
Making loans or investments with a variety of firms, to reduce the risk of being adversely affected by events at one or a few firms
What is diversification?
The interest rate charged by the central bank on the loans that it gives to other commercial banks
What is the discount rate?
Bonds that offer relatively high interest rates to compensate for their relatively high chance of default
What are high-yield bonds?
When the federal government spends more money than it receives in taxes in a given year
What is a budget deficit or deficit?
This student prefers to stay in the midst of things.
Who is Center?
An institution that operates between a party with financial assets to invest and an entity who will borrow those assets and pay a rate of return
What is a financial intermediary?
The interest rate at which one bank lends funds to another bank overnight
What is the federal funds rate?
An interest rate calculation on the principal plus the accumulated interest
What is a coupon rate?
The total accumulated amount the government has borrowed, over time, and not yet paid back
What is national debt?
This student is a really nice kid. But we both suggest to skip the numbers 3 and 4.
Who is Camden (Jaren)?
Dollar bills or other currencies with values backed up by gold or another commodity
What are commodity backed currencies?
The purchase of long term government and private mortgage-backed securities by central banks to make credit available in hopes of stimulating aggregate demand
What is quantitative easing?
The name economists give to the institutions that are supposed to watch over top executives in companies that shareholders own
What is corporate governance?
Fiscal policy that decreases the level of aggregate demand, either through cuts in government spending or increases in taxes
What is a contractionary fiscal policy?
Pride, unkindness, conspiracy: This student struggles with these words and confuses them often with no remorse.
Who is Penny (Megan)?