savings / investments Flashcards
1
Q
opportunity cost of consumption
A
saving money
2
Q
investment
A
borrowing (by business usually)
3
Q
saving
A
4
Q
push up GDP with consumption
A
short fix; it comes up with the expense of investment
5
Q
types of savings
A
deposit (money in the bank), buy bond, buy stocks
6
Q
deposit in bank
A
insurance
7
Q
buy bond
A
lending(sending) money; buying a receipt that says I owe you money plus interest
8
Q
buy stocks
A
9
Q
types of bonds
A
federal(treasury) bonds, corporate bonds, municipal(local gov) bonds
10
Q
treasury bonds
A
11
Q
corporate bonds
A
12
Q
municipal bonds
A
13
Q
types of investment
A
borrowing from the bank, sell bonds, sell stocks
14
Q
interest rate increases
A
quantity saved increases; quantity invested(borrowed) decreases
15
Q
interest rate decrease
A
quantity saved decreases; quantity invested(borrowed) increases
