Business Organizations, Money and Banking
Business run and owned by a single person
What is Sole Proprietorship?
Refers to the life of a bond
What is Maturity?
Put in money and receive interest back
What is a savings account?
Representative selection of commonly purchased goods and services
What is a market basket?
What is lack of education?
Government says it has value
What is Fiat Money?
Location where investors buy and sell shares of a company
What is the Stock Market?
General rise in prices
What is Inflation?
GDP stops rising and hits it’s maximum
Peak (Business Cycle)
Financial Aid in buying groceries at the store
What is food stamps?
Recognized by law a single entity with all the rights of an individual
What is a Corporation?
Bonds issued by state and local gov
Measures the US economy
What is Gross Domestic Product (GDP)
Prices drop, Unemployment rises and GDP drops
What is contraction? (Business Cycle)
Unemployment factored by season, machinery inflation an etc.
What is Sources of Unemployment?
Sets interest rates, manages money supply and regulates financial markets
What is the FED? (Federal Reserve)
Market share prices rises, encouraging buyers to buy or Market prices are on a decline. One market runs, the other kicks.
Current Measure of GDP
What is Nominal GDP?
Rising input cost that drives up prices
What is Cost Push Inflation?
Unemployment directly related to swings in the business cycle. Eg. Recessions
What is Cyclical Unemployment?
Portable, easily stored, divisible, durable and scarce.
What is the US Dollar?
Has a maturity of 20 - 30 years. Note has maturity of only 2 - 10 years.
What is Treasury Notes and Bonds?
What is real GDP?
Minimum wage increasing
What is Wage-Price Spiral
Incomes that fall under predetermined threshold