Chapter 13 - Saving, Investment, and the Financial System

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Last updated 8:01 PM on 4/13/22
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11 Terms

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Mutual Funds
________- an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds.
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Private
________ saving- the income that households have left after paying for taxes and consumption.
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budget surplus
A(n) ________ increases the supply of loanable funds, reduces the interest rate, and stimulates investment.
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National saving
________- the total income in the economy that remains after paying for consumption and government purchases.
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Stock
________- a claim to partial ownership in a firm.
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Public
________ saving- the tax revenue that the government has left after paying for its spending.
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Investment
________ is the source of the demand for loanable funds.
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Financial system
________- the group of institutions in the economy that helps to match one persons saving with another persons investment.
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Bond
________- a certificate of indebtedness.
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Loanable funds
________- comes from people who have some extra income they want to save and lend out.
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Budget surplus
________- an excess of tax revenue over government spending.

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