Class Notes (834,804)
Canada (508,727)
Economics (1,614)
ECON 1BB3 (535)
Lecture 15

lecture 15

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Department
Economics
Course
ECON 1BB3
Professor
Bridget O' Shaughnessy
Semester
Winter

Description
What do the terms saving and investment mean to an economist Financial institutions 1 Financial markets directly link borrowers and savers y Bond marketo Loan o Large businesses governments o Term riskLonger term higher interest rate higher riskhigher interest rate y Stock marketo Buying a share of a firm o Ownership o Share of a profit and loss o Profit dividends or capital gain o Risk of capital loss o The return on stocks is greater than bonds becauseRiskierBankr
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