Finance Flashcards
1
Q
Bond
A
A certificate of indebtedness that pays a reward to the holder
2
Q
Credit Risk
A
The probability that the borrower will fail to pay some of the interest or principal
3
Q
Sovereign Debt
A
When a government borrows money to finance public spending.
4
Q
Loanable Funds
A
All income that people have chosen to save and lend out, rather than use for their own consumption
5
Q
Crowding Out
A
A decrease in investment that results from government spending
