Questioons

Beatriz Guajardo AP Economics 2nd pd. 1. Financial System means the gathering of institutions in the deliverance that help to match one someones saving with another persons investment. tenor market and Bond market be markets that atomic number 18 a part of the financial system in the United States economy. Banks and sh atomic number 18d monetary resource are financial intermediaries. They ensure that the supply of funds from these who want to save balances the demand for funds from those who want to invest. 2. It is rattling important that people who own stocks and bonds diversify their holdings, because there is the resembling amount of risk to lose profit as come up as gaining some. A mutual fund makes diversification easier. A mutual fund is an institution that sells shares to the public and uses the proceeds to deal a selection or portfolio of stocks and bonds. That way people with stocks and bonds are allowed small amounts of currency to diversify, and are also able to recover the skills of professional money managers. 3. National savings are the score income in the economy that remains after paying for use and government purchases. Private savings are the income that households redeem go away after paying tax incomees and consumption. Public savings are the tax revenue that the government has left hand after paying for its spending.

They are related because all these three variables represent an amount of what is left of money a savings has after all expenses have been paid. 4. An Investment is the purchase of new capital, such as equipment or buildings. National savings are the total income on the economy that remains after paying for consumption and government purchases. They are related to each other on the sense that without investment there would be no national savings to train account of. National savings are made up of what is left of others investments and expenses. 5. The market is where all savers go to deposit money into their savings, and where borrowers go to take out loans. If the... If you want to get a full essay, order it on our website: Orderessay

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