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13 Cards in this Set
- Front
- Back
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Financial system
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the group of institutions in the economy that help to match one person's saving with another person's investment.
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Financial markets
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financial institutions through which savers can directly provide funds to borrowers.
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bond
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a certificate of indebtedness
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stock
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a claim to partial ownership in a firm.
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financial intermediaries
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financial institutions through which savers can indirectly provide funds to borrowers.
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mutual fund
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an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds.
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national saving
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the total income in the economy that remains after paying for consumption and government purchases.
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private saving
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the income that households have left after paying for taxes and consumption.
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public saving
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the tax revenue that the government has left after paying for its spending.
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budget surplus
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an excess of tax revenue over government spending.
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budget deficit
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a shortfall of tax revenue from government spending
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market for loanable funds
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the market in which those who want to save supply funds and those who want to borrow to invest demand funds.
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crowding out
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a decrease in investment that results from government borrowing.
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