Money & Banking Chpt.1
Miskin 9th. Edition
Markets in which funds are transferred from people who have an excess of available funds to people who have a shortage.
A claim on the issuer's future income or assets.
Any financial claim or piece of property that is subject to ownership.
A debt security that promises to make payments periodically for a specified period of time. It is where interest rates are determined.
The cost of borrowing or the price paid or the rental of funds.
Represents a share of ownership in a corporation.
Institutions that borrow funds from people who have saved and in turn make loans to others.
Major disruptions in financial markets that are characterized by sharp declines in asset prices and the failures of many financial and nonfinancial firms.
Financial institutions that accept deposits and make loans.
Delivery of financial services electronically.
Anything that is generally accepted in payment for goods or services or in the repayment of debts.
Total production of goods and services.
The percentage of the available labor force unemployed.
The upward and downward movement of aggregate output produced in the economy.
Periods of declining aggregate output.
The theory that relates changes in the quantity of money to changes in aggregate economic activity and the price level.
Aggregate Price Level
The average price of goods and services in an economy.
A continual increase in the price level.
The rate of change of the price level.
The management of money and interest rates.
The organization responsible for the conduct of a nation's monetary policy.
Federal Reserve System
The United States' central bank.
Decisions about government spending and taxation.
The excess of government expenditures over tax revenues for a particular time period.
Arises when tax revenues exceed government expenditures.
Gross Domestic Product
A measure of aggregate output.
Foreign Exchange Market
Where the conversion of currency takes place.
Foreign Exchange Rate
The price of one country's currency in terms of another.
The total income of factors of production (land, labor, and capital) from producing goods and services in the economy during the course of the year.
Measured using current prices.
The values are measured in terms of fixed prices.
The nominal GDP divided by real GDP.
The nominal personal consumption expenditures (PCE) divided by the real PCE
Consumer Price Index (CPI)
Measured by pricing a basket of goods and services bought by a typical urban household.