2. The payment of interest not only on the original deposit, but on all previously accumulated interest is called?
3. A nation's standard of living, as measured by real GDP per person, increases?
if either average labor productivity and/or the share of population employed increase.
4. If the share of population employed in two countries is the same, average living standards will be higher in the country with?
higher average labor productivity
5. Growth in the share of population employed in the United States is likely to decline in the future because?
an increasing proportion of those currently employed will be retiring
8. Which of the following is an example of investing in physical capital?
a firm purchases new equipment for a manufacturing process.
9. Increasing the capital available to the workforce, holding other factors constant, tends to __________ total output at a(n) __________ rate?
6. Charles has the following assets and liabilities:
*Two cars= $10,000
*Car Loans= $3,000
*Checking Account Balance= $2,000
*Credit Card Balance= 1,000
* What is the value of Charles liabilities?
10. Jay owns a classic car he purchased for $50,000. At a car rally he is offered $75,000 for the car. Based on this information?
Jay has a $25,000 capital gain.
11. Savings for protection against unexpected setbacks, such as the loss of a job or a medical emergency, is called __________ savings?
1. The financial system consists of financial __________, such as commercial banks, and financial __________, such as the stock market.
2. Privately owned firms that accept deposits from individuals and businesses and use those deposits to make loans are called?
3. Banks help savers find productive uses for their funds because banks have specialized in?
gathering information about and evaluating potential borrowers.
4. Two reasons savers keep deposits at banks are to?
earn a return on their savings and to facilitate making payments.
7. If the principal amount of a bond is $2,000,000, the coupon rate is 6%, and the inflation rate is 4%, then the annual coupon payment made to the holder of the bond is?
10. A financial intermediary that sells shares in itself to the public, and then uses the funds to buy a wide variety of financial assets is called a?