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