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