AP Macroecon Unit 4 Flashcards

9200381912	Financial Asset	a paper claim that entitles the buyer to future income from the seller	0
9200383772	Physical Asset	a tangible object that can be used to generate future income	1
9200384518	Liability	An amount owed	2
9200387772	Loans	amounts of money borrowed which will accumulate interest	3
9200387773	Stock	A share of ownership in a corporation.	4
9200388639	Bond	A form of lending to a company or the government (city, state, or federal)	5
9200390817	Asset-Backed Securities	Ownership in a collected group of debt to be repaid by others	6
9200400164	Liquidity	the ease with which an asset can be converted into cash	7
9200401420	Transaction Costs	The costs of time and information required to carry out market exchange	8
9200402297	Banks	Financial institutions that accept deposits and make loans	9
9200403407	Mutual Funds	Portfolios of assets professionally managed for others to invest in.	10
9200404625	Pension Funds	Managed investment pools to provide retirement income for members	11
9200407090	Financial Intermediary	institution that helps channel funds from savers to borrowers	12
9200418110	Wealth Effect	A change in consumer spending caused by a change in the value of owned assets	13
9200419884	Interest Rate Effect	higher prices lead to inflation which leads to less borrowing and a lowering of RGDP	14
9200426621	Stagflation	A period of falling output and rising prices	15
9200428019	Inflationary Gap	When aggregate output is above potential output	16
9200428020	Recessionary Gap	When aggregate output is below potential output	17
9200429979	Fiscal Policy	Government policy that attempts to manage the economy by controlling taxing and spending.	18
9200429980	Monetary Policy	The management of the money supply and interest rates	19