ch 32 definitions Flashcards
1
Q
monetary policy
A
use of interest rates and the money supply to control aggregate demand in the economy
2
Q
money supply
A
amount of money circulating in the economy
3
Q
base rate
A
rate of interest set by government or regional central banks for lending to other banks, which in turn influences all other rates in the economy
4
Q
mortgage
A
legal arrangement where you borrow money from a financial institution in order to buy land or a house, and you pay back the money over a period of time; if you do not make your regular payments, the lender normally has the right it take the property and sell it in order to get back their money
5
Q
rate of interest
A
price of borrowing money
