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18 Cards in this Set
- Front
- Back
annual interest expressed as a percentage of the amount borrowed or saved
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interest rate
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a downward-sloping curve showing the negative relationship between the interest rate and the quntity of loans demanded, other things constant
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demand for loans curve
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an upward sloping curve showing hte positive relationship between the interest rate and the quantity of loans supplied, other things constatn
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supply of loans curve
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the market that brings together borrowers (the demanders of loans ad savers(the suplliers of loans) to determine the market interest rate
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market for loans
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the only interest rate at which the quntity of loans demanded equals the quantity of loans supllied
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equlibrium interst rate
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banks and other institutions that serve as go-betweens, accepting funds from savers and lending them to borrowers
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financial intermediaries
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the ability to borrow now, based on the promise of repayment in the future
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credit
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an arrangment iwht a bank through which a business can quickly borrow needed cash
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line of credit
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the interest rate lenders charge for loans to their most trustworthy business borrowers
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prime rate
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an asset owned by the borrower htat can be sold topay off the loan in the even the loan is not repaid
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collateral
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the initial sale of corporate stock to the public
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initial public offering (IPO)
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the portion of after-tax corporate profit paid out to shareholders
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dividend
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the portion of aftertax corporate profit reinvested in the firm
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retained earnings
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a contract promising to repay borrowed money on a designmated date and pay interest along the way
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bond
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corporate stock and corporate bonds
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securities
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one firm combines with another from which it buys inputs or to which it sells output, such as a merger between a steel producer and an automaker
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vertical merger
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one firm combines wiht another firm n a different industry, such as a merger between a plastics maker and an electronics firm
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conglomerate merger
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a larger corporation that makes and sells it products around the world
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multinational corporation (MNC)
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