ECO 1102 Lecture Notes - Lecture 8: Dow Jones Industrial Average, National Income And Product Accounts, Mutual Fund

42 views6 pages
lavendermink809 and 37946 others unlocked
ECO 1102 Full Course Notes
46
ECO 1102 Full Course Notes
Verified Note
46 documents

Document Summary

Financial system: group of institutions in economy that help to match 1 person"s savings w/ another person"s investment. Financial institutions can be grouped into 2 categories: financial markets, financial intermediaries. At broadest level, financial system moves economy"s scarce resources from savers (people who spend less than they earn) to borrowers (people who spend more than they earn) Savers save for various reasons to put a child thru college or university in several years or to retire comfortably in several decades. Similarly, borrowers borrow for various reasons to buy a house in which to live or to start a business w/ which to make a living. Savers supply their money to financial system w/ expectation that they will get it back w/ interest at a later date. Borrowers demand money from financial system w/ knowledge that they will be required to pay it back w/ interest at a later date.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related textbook solutions

Related Documents

Related Questions