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Flashcards

30, 31, 32, 33

merrileegibbsdavolt Spring 15 English 84 cards

Cards in this deck (84)

  1. 1a market in which people trade future claims on funds or goodsFinancial Market
  2. 2market in which savers supply funds to those who want to borrowMarket For Loanable Funds
  3. 3the portion of income that is not immediately spent on consumption of goods and servicesSavings
  4. 4spending on productive inputs, such as factories, machinery, and inventoriesInvestment
  5. 5the price of borrowing money for a specified period of time, expressed as a percentage per dollar borrowed and per unit of timeInterest Rate
  6. 6the reduction in private borrowing caused by an increase in government borrowingCrowding Out
  7. 7the failure of a borrower to pay back a loan according to the agreed-upon termsDefault
  8. 8the interest rate at which one would lend if there were no risk of default; usually approximated by interest rates on U.S. government debtRisk-Free Rate
  9. 9the group of institutions that bring together savers, borrowers, investors, and insurers in a set of interconnected markets where people trade financial productsFinancial System
  10. 10institutions that channel funds from people who have them to people who want themFinancial Intermediaries
  11. 11a measure of how easily a particular asset can be converted quickly to cash without much loss of valueLiquidity
  12. 12the process by which risks are shared across many different assets or people, reducing the impact of a particular risk on any one individualDiversification
  13. 13a financial asset that represents partial ownership of a companyStock
  14. 14a payment made periodically, typically annually or quarterly, to all shareholders of a companyDividend
  15. 15an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interestLoan
  16. 16a form of debt that represents a promise by the bond issuer to repay the face value of the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rateBond
  17. 17an asset whose value is based on the value of another assetDerivative
  18. 18a portfolio of stocks and other assets, managed by a professional who makes decisions on behalf of clientsMutual Fund
  19. 19a professionally managed portfolio of assets intended to provide income to retireesPension Fund
  20. 20any risk that is broadly shared by the entire market or economyMarket (Systematic) Risk
  21. 21any risk that is unique to a particular company or assetIdiosyncratic Risk
  22. 22a measure of how spread out a set of numbers isStandard Deviation
  23. 23a measure of the current value of a stream of cash flows expected in the futureNet Present Value
  24. 24the idea that market prices always incorporate all available information, and therefore represent true value as correctly as is possibleEfficient-Market Hypothesis
  25. 25the process of taking advantage of market inefficiencies to earn profitsArbitrage
  26. 26the savings of individuals or corporations within a countryPrivate Savings
  27. 27the difference between government tax revenue and government spendingPublic Savings
  28. 28the sum of the private savings of individuals and corporations plus the public savings of the governmentNational Savings
  29. 29an economy that does not interact with other countries' economiesClosed Economy
  30. 30an economy that interacts with other countries' economiesOpen Economy
  31. 31the difference between capital inflows (investment financed by savings from another country) and capital outflows (domestic savings invested abroad)Net Capital Flow
  32. 32the set of all assets that are regularly used to directly purchase goods and servicesMoney
  33. 33a certain amount of purchasing power that money retains over timeStore Of Value
  34. 34the ability to use money to purchase goods and servicesMedium Of Exchange
  35. 35directly offering a good or service in exchange for some good or service you wantBarter
  36. 36a standard unit of comparisonUnit Of Account
  37. 37any form of money that can be legally exchanged into a fixed amount of an underlying commodityCommodity-Backed Money
  38. 38money created by rule, without any commodity to back itFiat Money
  39. 39funds held in bank accounts that can be withdrawn by depositors at any time without advance noticeDemand Deposits
  40. 40the money that a bank keeps on hand, either in cash or deposits at the Federal ReserveReserves
  41. 41the ratio of the total amount of demand deposits at a bank to the amount kept as cash reservesReserve Ratio
  42. 42the amount that a bank is legally required (by the Federal Reserve) to keep on handRequired Reserves
  43. 43any additional amount, beyond the required reserves, a bank chooses to keep in reserveExcess Reserves
  44. 44the ratio of money created by the lending activities of the banking system to the money created by the government's central bankMoney Multiplier
  45. 45a banking system in which banks keep on reserve less than 100 percent of their depositsFractional-Reserve Banking
  46. 46the amount of money available in the economyMoney Supply
  47. 47the definition of money that includes cash plus checking account balancesM1
  48. 48definition of money that includes everything in M1 plus savings accounts and other financial instruments where money is locked away for a specified amount of time; less liquid than M1M2
  49. 49the institution ultimately responsible for managing the nation's money supply and coordinating the banking system to ensure a sound economyCentral Bank
  50. 50actions by the central bank to manage the money supply, in pursuit of certain macroeconomic goalsMonetary Policy
  51. 51a system of a seven-member Board of Governors and 12 regional banks that act as the central bank of the United StatesFederal Reserve
  52. 52the twin responsibilities of the Federal Reserve, to use monetary policy to ensure price stability and maintain full employmentDual Mandate
  53. 53the regulation that sets the minimum fraction of deposits banks must hold in reserveReserve Requirement
  54. 54the lending facility run by the Fed that allows any bank to borrow reservesDiscount Window
  55. 55the interest rate charged by the Fed for loans of reserves through the discount windowDiscount Rate
  56. 56sales or purchases of government bonds by the Fed, to or from banks, on the open marketOpen-Market Operations
  57. 57actions that reduce the money supply in order to decrease aggregate demandContractionary Monetary Policy
  58. 58actions that increase the money supply in order to increase aggregate demandExpansionary Monetary Policy
  59. 59the interest rate at which banks choose to lend reserves held at the Fed to one anotherFederal Funds Rate
  60. 60idea that the quantity of money people want to hold is a function of the interest rateLiquidity-Preference Model
  61. 61an overall rise in prices in the economyInflation
  62. 62an overall fall in prices in the economyDeflation
  63. 63measure of inflation that excludes goods with historically volatile price changesCore Inflation
  64. 64measure of inflation that includes all of the goods that the average consumer buysHeadline Inflation
  65. 65a measure of the average price level for GDP; in practice, the CPI or GDP price deflatorAggregate Price Level
  66. 66the idea that aggregate price levels do not affect real variable in the economyNeutrality Of Money
  67. 67theory that the value of money is determined by the overall quantity of money in existence (the money supply)Quantity Theory Of Money
  68. 68the number of times the entire money supply turns over in a given periodVelocity Of Money
  69. 69the equation MxV=PxY, which relates the money supply and velocity of money to the price value of real outputQuantity Equation
  70. 70the costs (measured in money, time, and opportunity) of changing prices to keep pace with inflationMenu Costs
  71. 71the costs (measured in time, money, and effort) of managing cash in the face of inflationShoe-Leather Costs
  72. 72the reported interest rate, not adjusted for the effects of inflationNominal Interest Rate
  73. 73the interest rate adjusted for the effects of inflationReal Interest Rate
  74. 74a period in which inflation rates are falling, but still positiveDisinflation
  75. 75the total amount of output a country could produce if all of its resources were fully engagedPotential Output
  76. 76the difference between actual and potential output in an economyOutput Gap
  77. 77a model that shows the connection between inflation and unemployment in the short runPhillips Curve
  78. 78the lowest possible unemployment rate that will not cause the inflation rate to increaseNon-Accelerating Inflation Rate Of Unemployment
  79. 79the practice of using borrowed money to pay for investmentsLeverage
  80. 80the practice of packaging individual debts into a single uniform assetSecuritization
  81. 81the amount that consumers have to spend to pay their debts, often expressed as a percentage of disposable incomeDebt Service
  82. 82high inflation despite low economic growth and high unemploymentStagflation
  83. 83so large in terms of assets or customers, or so historically important, that banking regulators allow the bank to keep operating despite insolvency"Too Big To Fail"
  84. 84policies that are designed to directly increase the money supply by a certain amountQuantitative Easing

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Spring 15 (Macro) Flashcards on 30, 31, 32, 33, created by merrileegibbsdavolt on 14/01/2015.
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