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CH 11-1 Macro-JW
Vocabulary Macro 11-1 JW
Question | Answer |
---|---|
Savings | Income not used for consumption, not spent on wants. |
Investment | Money put to work to earn more money; allows for future benefit. |
Financial System | Allows the transfer of funds between savers and investors. Includes: Banks, insurance markets, bond markets, stock markets. |
Financial Asset | A claim on the property of the borrower. Examples of assets: savings account, CD, mortgage, stocks, bonds, Treasury bonds etc. |
Financial Market | A situation where buyers and sellers exchange a particular type of financial asset. Example: Stocks are purchased in a stock market. |
Mutual Fund | A pool of money that is managed by an investment company that gathers that money from individual investors and purchases a variety of financial assets. |
Capital Market | The market for buying long-term financial assets. Example: long-term (more than a year) CD or a mortgage are sold in capital markets. |
Savings | The market for buying short-term (less than a year) financial asets. Examples include: 6 month CD or 26 week Treasury bill. |
Investment | The market for buying newly created financial assets directly from source. |
Secondary market | The market where financial assets are re-sold. |
Resalability | A financial asset that can be offered up for sale. |
Financial Market | Money lent to businesses |
Personal Investment | Individuals putting money into savings accounts, CDs, stocks, bonds, or mutual funds. |
Economic Investment | Refers to money lent to businesses. |