Capital Market Flashcards
Capital
Those goods produced by the economic system that are used as inputs to produce other goods and services in the future.
Tangible or physical capital
Material things used as inputs in the production of future goods and services. The major categories are buildings, equipment, inventory?
Social capital or infrastructure
Capital that provide services to the public. Mostly public works and public services.
Intangible capital
Nonmaterail things that contribute to the output of future goods… example? Goodwill
Human capital
A form of capital that includes skills and knowledge that workers have.
Capital stock
Current market value of all the stuff.
Investment (in economics terms)
The term only means “an increase in capital”. Flow measure
Depreciation
The decline in an assets economic value over time
Capital markets
The market in which households supply their savings to firms that need money to buy capital goods
Bond
Contract between a borrower and a lender
Financial capital market
The part of the financial market in which savers and firms interact through intermediaries