AP_Krugman_Textbook
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On October 2, 2004, FBI and Secret Service agents seized a shipping container that had just arrived in Newark, New Jersey, on a ...
What you will learn in this Module: 222 section 5 The Financial Sector The relationship between savings and investment spending ...
other countries. The overall income of this simplified economy would, by definition, be equal to total spending in the economy. ...
It’s important to note that, from a national perspective, a dollar generated by na- tional savings and a dollar generated by cap ...
Three Tasks of a Financial System There are three important problems facing borrowers and lenders: transaction costs, risk, and ...
short notice to satisfy the lender’s need to recover his money. Knowing this in advance—that there is a danger of needing to get ...
Loan-backed Securities Loan-backed securities,assets created by pooling individ- ual loans and selling shares in that pool (a pr ...
Mutual Funds As we’ve explained, owning shares of a company entails risk in return for a higher potential reward. But it should ...
you receive credit for a bank deposit—a claim on the bank, which is obliged to give you your cash if and when you demand it. So ...
230 section 5 The Financial Sector The federal government is said to be “dissaving” when a. there is a budget deficit. b. there ...
What you will learn in this Module: The definition and functions of money The various roles money plays and the many forms it t ...
the total value of financial assets in the economy that are considered money. The nar- rower definition considers only the most ...
Unit of Account Finally, money normally serves as the unit of account—the com- monly accepted measure individuals use to set pri ...
role that is ultimately decreed by the U.S. government. Money whose value derives entirely from its official status as a means o ...
traveler’s checks, and checkable bank deposits. M2 starts with M1 and adds several other kinds of assets, often referred to as n ...
236 section 5 The Financial Sector Tackle the Test: Multiple-Choice Questions When you use money to purchase your lunch, money ...
What you will learn in this Module: Why a dollar today is worth more than a dollar a year from now How the concept of present v ...
you do with it? You put it in the bank; in effect, you are lending the $1,000 to the bank, which in turn lends it out to its cus ...
Rearranging Equation 24-2 to solve for $X, the amount you need today in order to re- ceive $1 one year from now is: (24-3) Amoun ...
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