Study sets matching "financial economic"
Study sets
Diagrams
Classes
Users
Public Utilities
Federal Reserve System district amount
Debit Card
Bonds
In the US economy, the business sector MOST LIKELY made up of…
12 districts
The payment method that immediately withdraws money electronic…
the financial instrument designed to offer regular interest pa…
Public Utilities
In the US economy, the business sector MOST LIKELY made up of…
Federal Reserve System district amount
12 districts
investment
financial system
financial asset
financial intermediary
spending on capital equipment, inventories, and structures, in…
a claim on the property or income of a borrower
claim on the property or income of a borrower
is an institution that transforms the funds it gathers from ma…
investment
spending on capital equipment, inventories, and structures, in…
financial system
a claim on the property or income of a borrower
Economic Investment
FInancial investment
Present Value of Money
Time value of money
paying for new additions/replacement to capital stock
buying or building assets for financial gain... new or old asset…
present day value of future returns or costs that are expected…
a specific amount of $ is more valuable to a person sooner it…
Economic Investment
paying for new additions/replacement to capital stock
FInancial investment
buying or building assets for financial gain... new or old asset…
Economics
Types of economy
Supply and Demand
Business cycle
Science that deals with production, distribution, and consumpt…
Market- Decisions made by individuals... Command- Decisions made…
Demand- Willingness to buy... Supply- amount of goods
Economics
Science that deals with production, distribution, and consumpt…
Types of economy
Market- Decisions made by individuals... Command- Decisions made…
Financial investment
investment that increases value
Financial asset
real asset
buying or building an asset for financial gain
fixing a kitchen or bathroom in a house... buying art(rich people…
re cash and securities, such as stocks and bonds
include gold, oil or real estate, production equipment, invent…
Financial investment
buying or building an asset for financial gain
investment that increases value
fixing a kitchen or bathroom in a house... buying art(rich people…
Savings
Investment
financial system
financial asset
income not used for consumption
the use of income today that allows for a future benefit
all the institutions that help transfer funds between savers a…
a claim on the property of the borrower
Savings
income not used for consumption
Investment
the use of income today that allows for a future benefit
Adam Smith
Karl Marx
John Maynard Keynes
Traditional Economy
Believed individuals should govern themselves economically. Go…
Believed that the government should control our economic life
Believed that individuals should be able to govern their own e…
Focus on producing what is needed. ... Trade locally... little to no…
Adam Smith
Believed individuals should govern themselves economically. Go…
Karl Marx
Believed that the government should control our economic life
Supply
Demand
Opportunity Cost
Scarcity
The total amount of a specific good or service that is availab…
A consumer's desire and willingness to pay a price for a speci…
A benefit that a person could have received, but gave up, to t…
The gap between limited resources and theoretically limitless…
Supply
The total amount of a specific good or service that is availab…
Demand
A consumer's desire and willingness to pay a price for a speci…
Money
Legal Tender
Barter
Double-Coincidence of Wants
Anything that serves as a medium of exchange, a unit of accoun…
Any kind of money that a creditor must by law accept in paymen…
Exchange of goods without involving money; the exchange of one…
Both parties involved in a trade of goods or services wanting…
Money
Anything that serves as a medium of exchange, a unit of accoun…
Legal Tender
Any kind of money that a creditor must by law accept in paymen…
budget
consumer
credit
economy
an estimate, often itemized, of expected income and expense fo…
a person who purchases goods and services for personal use
time allowed for payment for goods or services obtained on tru…
the wealth and resources of a country or region, esp. in terms…
budget
an estimate, often itemized, of expected income and expense fo…
consumer
a person who purchases goods and services for personal use
Financial Institution
Savings
Interest
Interest rate
a bank, trust company, insurance company, credit union, buildi…
Disposable income not spent for consumer goods.
The amount of money that is either gained or lose when accessi…
The percentage used annually to calculate the total interest e…
Financial Institution
a bank, trust company, insurance company, credit union, buildi…
Savings
Disposable income not spent for consumer goods.
MONETARY THEORY
VELOCITY OF MONEY
EQUATION OF EXCHANGE
DEMAND FOR MONEY
the theory that relates changes in the quantity of money to ch…
the rate of turnover of money; the average number of times per…
the equation MV=PY, which relates nominal income to the quanti…
the quantity of money that people want to hold.
MONETARY THEORY
the theory that relates changes in the quantity of money to ch…
VELOCITY OF MONEY
the rate of turnover of money; the average number of times per…
RISK STRUCTURE OF INTEREST RATES
TERM STRUCTURE OF INTEREST RATES
DEFAULT
DEFAULT-FREE BONDS
the relationships among the interest rates on various bonds wi…
the relationships among interest rates on bonds with different…
a situation in which the party issuing a debt instrument is un…
bonds with no default risk, such as U.S. government bonds.
RISK STRUCTURE OF INTEREST RATES
the relationships among the interest rates on various bonds wi…
TERM STRUCTURE OF INTEREST RATES
the relationships among interest rates on bonds with different…
CASH FLOWS
PRESENT VALUE (PRESENT DISCOUNTED VALUE)
SIMPLE LOAN
FIXED-PAYMENT LOAN (FULLY AMORTIZED LOA…
cash payments to the holder of a security.
today's value of a payment to be received in the future, when…
a credit market instrument that provides the borrower with an…
a credit market instrument that provides the borrower with an…
CASH FLOWS
cash payments to the holder of a security.
PRESENT VALUE (PRESENT DISCOUNTED VALUE)
today's value of a payment to be received in the future, when…
LIABILITIES
CAPITAL
MATURITY
SHORT-TERM
IOUs or debts.
wealth, either financial or physical form, that is employed to…
the time to the expiration date (maturity date) of a date inst…
with reference to a debt instrument, having a maturity of one…
LIABILITIES
IOUs or debts.
CAPITAL
wealth, either financial or physical form, that is employed to…
investment
financial system
financial asset
financial intermediary
spending on capital equipment, inventories, and structures, in…
a claim on the property or income of a borrower
claim on the property or income of a borrower
is an institution that transforms the funds it gathers from ma…
investment
spending on capital equipment, inventories, and structures, in…
financial system
a claim on the property or income of a borrower
CURRENCY
WEALTH
INCOME
MEDIUM OF EXCHANGE
paper money (such as dollar bills) and coins.
all resources owned by an individual, including all assets.
the flow of earnings.
anything that is used to pay for goods and services.
CURRENCY
paper money (such as dollar bills) and coins.
WEALTH
all resources owned by an individual, including all assets.
adverse selection
asset transformation
asymmetric information
brokers
problem created by asymmetric information before the transacti…
the process of risk sharing
inequality of information available
agents of investors who match buyers with sellers of securities
adverse selection
problem created by asymmetric information before the transacti…
asset transformation
the process of risk sharing
FINANCIAL MARKETS
SECURITY (FINANCIAL INSTRUMENT)
ASSET
BOND
markets in which funds are transferred from people who have a…
a claim on a borrower's future income that is sold by the borr…
a financial claim or piece of property that is a store of valu…
a debt security that promises to make periodic payments to the…
FINANCIAL MARKETS
markets in which funds are transferred from people who have a…
SECURITY (FINANCIAL INSTRUMENT)
a claim on a borrower's future income that is sold by the borr…
Aggregate Income
Aggregate Output
Aggregate Price Level
Asset
Total income of factors of production (land, labor and capital…
Total production of goods and services in an economy
Average price of goods and services in an economy
Any financial claim or piece of property that is subject to ow…
Aggregate Income
Total income of factors of production (land, labor and capital…
Aggregate Output
Total production of goods and services in an economy
WEALTH
EXPECTED RETURN
RISK
LIQUIDITY
all resources owned by an individual, including all assets.
the return on an asset expected over the next period.
the degree of uncertainty associated with the return of an ass…
the relative ease and speed with which an asset can be convert…
WEALTH
all resources owned by an individual, including all assets.
EXPECTED RETURN
the return on an asset expected over the next period.
operating activity
investment activity
financing activity
Common-Size Balance Sheets
net income and changes in current accounts
changes in fixed assets
how firm raises cash... changes in notes payable, LT debt, and eq…
Compute all accounts as a percent of total assets
operating activity
net income and changes in current accounts
investment activity
changes in fixed assets
the 3 basic financial statements
income statement
revenues or income
expenses
-income statement... -balance sheet ... -statement of cash flows
presents information about the revenues, expenses, and income…
income from business operations or money collected from custom…
money spent by the company to earn income including sales expe…
the 3 basic financial statements
-income statement... -balance sheet ... -statement of cash flows
income statement
presents information about the revenues, expenses, and income…
Real Asset
Financial Assets
Risk-Return trade off
Put option
Physical assets used to produce goods and services. National w…
Claims on real assets or income generated by real assets. Allo…
The higher the risk, the higher the expected return. Therefore…
The right to sell an option at a specified price before its ex…
Real Asset
Physical assets used to produce goods and services. National w…
Financial Assets
Claims on real assets or income generated by real assets. Allo…
algorithm
precept
roughly
crunch
(n.) a process or set of rules to be followed in calculations…
(n.) a general rule intended to regulate behavior or thought
(adv.) in a manner lacking refinement and precision; approxima…
(v.) process large amounts of information or perform operation…
algorithm
(n.) a process or set of rules to be followed in calculations…
precept
(n.) a general rule intended to regulate behavior or thought