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5. Financial Markets

Macro

TermDefinition
Narrow Money physical currency, as well as deposits and liquid assets in the central bank
Broad Money the entire money supply, it includes liquid and less liquid assets
Financial Market when buyers and sellers can buy and trade a range of services or assets that are fundamentally monetary in nature
Harrod-Domar Model savings provide the funds that are used for investment, and growth rates depend on the level of saving and the productivity of investment. Therefore growth in developing countries is limited by the lack of investment
Microfinance schemes which aim to give poor and near-poor households permanent access to a range of financial services
Central Banks a financial institution that has direct responsibility to control the money supply and monetary policy, to manage gold reserves and foreign currency and to issue govt debt
Recession two consecutive quarters of negative economic growth
Created by: 19thomps
 

 



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