Exam (elaborations)
ECONOMICS CHAPTER 10-11|TESTS WITH 100% CORRECT ANSWERS
- Course
- Institution
ECONOMICS CHAPTER 10-11|TESTS WITH 100% CORRECT ANSWERS
[Show more]
Content preview
ECONOMICS CHAPTER 10-11|TESTSWITH 100% CORRECT ANSWERS
money supply - all the money available in the United States economy
M1 - represents money that people can gain access to easily and immediately to pay for goods and
services (liquidity ad deposits in checking accounts)
liquidity - the ability to be used as, or directly converted, to cash
demand deposit - the money in checking accounts
M2 - can't be used as cash directly, but can be converted to cash fairly easily. Also called near
money (deposits in savings accounts and money market mutual funds)
money market mutual fund - a fund that pools money from small savers to purchase short-term
government and corporate securities
fractional reserve banking - a banking system that keeps only a fraction of funds on hand and lends
out the remainder
default - failure to pay back a loan
mortgage - a specific type of loan that us used to buy real estate
credit cards - a card entitling its holder to buy goods and services based on the holder's
promise to pay for these goods and services
, interest - price paid for the use of borrowed money
principal - the amount of money borrowed
commercial banks - offer checking services, accept deposits, and make loans. They have the
largest role in the economy of any type of bank
credit unions - cooperative lending associations for particular groups, usually employees of a
specific firm or government agency
finance companies - make installment loans to consumers
benefits of buying stock - dividends and capital gains
capital gain - the difference between a higher selling price and a lower purchase price,
resulting in a financial gain for the seller
capital loss - the difference between a lower selling price and a higher purchase price resulting
in a financial loss to the seller
stock split - the division of a single share of stock into more than one share
stockbroker - a person who links buyers and sellers of stock
brokerage firm - a business that specializes in trading stocks
stock exchanges - a market for buying and selling stock
New York Stock Exchange - NYSE is the country's larges and most powerful exchange
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Examsplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67232 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now