Financial System Terms and Definitions, Quizzes of Introduction to Macroeconomics

Download Financial System Terms and Definitions and more Quizzes Introduction to Macroeconomics in PDF only on Docsity! TERM 1 Financial System DEFINITION 1 the group of institutions in the economy that help to match one person's saving with another person's investment. TERM 2 Financial markets DEFINITION 2 financial institutions through which savers can directly provide funds to borrowers. TERM 3 Bond DEFINITION 3 a certificate of indebtness. TERM 4 Stock DEFINITION 4 a claim to partial ownership in a firm. TERM 5 Financial Intermediaries DEFINITION 5 financial institutions through which savers can indiretly provide funds to borrowers. TERM 6 Mutual Fund DEFINITION 6 an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds. TERM 7 National Saving DEFINITION 7 the total income in the economy that remains after paying for consumption and government purchases. TERM 8 Private Saving DEFINITION 8 the income that households have left after paying for taxes and consumption. TERM 9 Public Saving DEFINITION 9 the tax revenue that the government has left after paying for its spending. TERM 10 Budget Surplus DEFINITION 10 an excess of tax revenue over government spending.