ba 3300 notes #4 Flashcards
1
Q
Share of the market held by the X largest firms.
A
Concentration ratios
2
Q
defined as sum of squared market shares s (in %) for all n active firms in an industry
A
The Herfindahl-Hirschman Index (HHI)
3
Q
determines the cost of short-term (interbank) borrowing. Used to stimulate the economy or prevent it from overheating. Aside: yield curve inversion signals “bad” long-term outlook.
A
Federal Funds Rate
4
Q
M2 consist of currencies outside the US treasury, banks, and demand deposits at commercial banks, and other liquid deposits such as saving deposits.
A
Money Supply in the US
