AP Macro 22-27

which is considered investment spending in macroeconomics?

GM builds a new plant to manufacture automobiles

a financial asset is

a claim that entitles the buyer to future income from the seller

Which of the following assets would be considered to be the least liquid?

a house

A financial intermediary that creates a diversified portfolio of stocks and then resells that portfolio to individual investors is known as:

a mutual fund

a liability is

a requirement that you pay income in the future

a bond is

an IOU that pays interest

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

When a corporation borrows money from lenders in exchange for a fixed share of the firm's assets and potential profits, the corporation is:

issuing stocks

As an investor, you may choose to purchase a bond or a share of stock. If you choose to purchase the bond, you are likely to receive a(n) _____ return in exchange for a(n) _____ level of risk.

lower, lower

The savings-investment spending identity says that:

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

a share in the ownership of a company held by a shareholder is considered

stock

transaction costs are

the expenses of negotiating and executing a deal