Financial System And Peoductivity Flashcards
1
Q
Who are Financial markets?
A
Bonds and stock markets
2
Q
Who are Financial intermediaries?
A
Bank and investment funds
3
Q
Market of loanable funds
Characteristics
A
People who wants to save and borrow supply funds invest demand funds
Real interest rates are the price
Equilibrium defines interest rate
Is affected positively or negatively by government policies (taxes)
4
Q
Loanable funds
A
All income people chose to save and borrow
5
Q
What is productivity?
A
Amount of goods and services that a worker can produce per hour
Helps understand differences in living standards among countries
