Civics Econ week 2

¡Supera tus tareas y exámenes ahora con Quizwiz!

GDP deflator

for a given year is 100 times the ratio of nominal GDP to real GDP in that year

liquid

if an asset can be quickly converted into cash without much loss of value

loan-backed security

an asset created by pooling individual loans and selling shared in that pool

financial intermediary

an institution that transforms the funds it fathers from many individuals into financial assets

Menu costs

are the real costs of changing listed prices

illiquid

assets that cannot be quickly converted into cash without much loss of value

nominal intrest rate

in the interest rate actually paid for a loan

diversification

investing in several different assets so that the possible losses are independent events

bank deposit

is a claim on a bank that obliges the bank to give the depositor his or her cash when demanded

Real income

is the income divided by the price level

Producer price index

measures changes in the prices of goods and services purchased by producers

price index

measures the cost of purchasing a given market basket in a given year. The index value is normalized so that it is equal to 100 in the selected base year

consumer price index

measures the cost of the market basket of a typical urban American family

interest rate

the price, calculated as a percentage of the amount borrowed, charged by lenders to borrowers for the use of their savings for one year

disinflation

the process of bringing the inflation rate down

national savings

the sum of private savings and the budget balance, is the total amount of savings generated within the economy

real wage

the wage rate divided by the price level

financial risk

uncertainty about future outcomes that involve financial losses and gains

default

when a borrower fails to make payments as specified by the loan or bond contract

unit-of-account costs

Arise from the way inflation makes money a less reliable unit of measure

mutual fund

a financial intermediary that creates a stock portfolio and then resells shares of this portfolio to individual investors

bank

a financial intermediary that provides liquid assets in the form of bank deposits to lenders and uses those funds to finance the illiquid investment spending needs of borrowers

market basket

a hypothetical set of consumer purchases of goods and services

loan

a lending agreement between an individual leader and an individual borrower

aggregate price level

a measure of the overall level of prices in the economy

pension fund

a type pf mutual fund that holds assets in order to provide retirement income to its members

savings-investment spending identity

savings and investment spending are always equal for the economy as a whole

life insurance company

seems policies that guarantee a payment to a policyholder's beneficiaries when the policyholder dies

budget deficit

the difference between tax revenue and government spending when government spending excess tax revenue

budget surplus

the difference between tax revenue and government spending when tac revenue exceeds government spending

transaction costs

the expenses of negotiating and executing a deal

shoe-leather costs

the increased costs of transactions caused by inflation

capital inflow

the net inflow of funds into a country

real interest rate

the nominal interest rate minus the rate of inflation

inflation rate

the percent change per year in a price index- typically the consumer price index


Conjuntos de estudio relacionados

Types of Tissues Found in the Body

View Set

Real Estate Investment Trusts (REIT)

View Set

section 7 unit 1: A Brief History of Agency

View Set

Information Systems Management - C724 (Set 1)

View Set

Geometry - (Points, Lines, Planes, Rays, Segments)

View Set

HTML5 forms, usability, and accessibility

View Set