macro 4
a bond is:
A type of debt that a company issues to investors for a specified period of time.
the government saves when it:
has a budget surplus
Banks create money when they:
make loans
when countries replaced gold and silver coins with paper money exchangeable for certain amounts of precious metals the monetary system evolved from:
using commodity money to using commodity-backed money
which of the following is an example of investment spending?
A local Domino's Pizza store has purchased a new pizza oven.
a capital inflow into a country is associated with:
Imports exceeding exports
The term "liquid asset" means:
That the asset is readily convertible to cash
a financial asset is:
a claim that entitles the owner to future income from the seller
a loan is:
a liability for the borrower and an asset for the lender
A stock company is:
a share in the ownership of a company held by a shareholder
a physical asset is:
a. a claim on a tangible asset that gives the owner the right to dispose of it as he or she wishes
investment spending refers to:
adding to physical capital
when a household makes a loan to a firm with the firm providing interest to the household, this is known as:
bond
national savings is the sum of private savings and:
budget balance
from the standpoint of economic growth, banks are important to:
channel savings into investment
which of the following would accurately characterize the portion of a firm's profit paid to the owner of one share of its stock?
dividend
physical capital is purchased through investment spending, which in turn is mostly financed out of:
domestic and foreign savings
Money that some authority, generally a government, has ordered to be accepted as a medium of exchange is called _____ money.
fiat
Private savings is equal to:
income after taxes minus consumption.
If the price of an asset is expected to rise in the future:
it will be more in demand today
to help increase investment spending, the government can:
lower taxes on the returns from savings, so that total savings increase and the interest rate falls.
If banks were required to keep 100% of deposits in reserves, they could:
make no loans
in a closed economy, all investment spending must come from:
national savings
Banks are financial intermediaries that:
provide liquid assets to lenders and long-term financing to borrowers
financial markets spread the potential gains and losses of borrowing and lending operations among many individuals, therefore decreasing the overall uncertainty. this is an example of:
reducing risk
In a simple closed economy, all investment spending must come from:
savings
the savings-investment spending identity says that:
savings and investment spending are always equal for the economy as a whole
economists view investment spending as which of the following?
spending on physical capital
a share in the ownership of a company held by a shareholder is considered a(n):
stock
a budget surplus would exist when which of the following occurs?
taxes are greater than government spending
the budget balance is equal to:
taxes minus government spending
Human capital refers to
the accumulated skills and training workers have
a liability is:
the legal responsibility of competent adults for their own acts
a household's wealth is:
the value of a household's accumulated savings
the value of all accumulated savings of a household is considered:
wealth