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SAVING-INVESTMENT MODEL: A model used to identify equilibrium in Keynesian economics based on injections (investment, I) and leakages (saving, S) for the two basic sectors (household and business). Equilibrium is achieved at the intersection of the saving line, S, and the investment line, I.
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Lesson 18: Banking | Unit 2: Banking Details
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Page: 10 of 24
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- The four types of financial institutions: banks, savings and loans associations, credit unions, and mutual savings banks.
- That banks were once the only financial intermediaries that offered checking accounts, but that all four types of banks now offering checking accounts.
- That a balance sheet is the record of a bank's assets and liabilities, which contains two parts: (1) Assets, and (2) Liabilities and Net Worth.
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VALUE IN EXCHANGE The ability to trade an item or asset, especially money, for other goods and services that can then be used to satisfy wants and needs. Value in exchange means that value (that is, satisfaction) is obtained indirectly through the acquisition of something else. For an item to have value in exchange it need NOT have value in use, value obtained directly from the consumption of a good or service.
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BROWN PRAGMATOX
[What's This?]
Today, you are likely to spend a great deal of time browsing through a long list of dot com websites hoping to buy either one of those "hang in there" kitty cat posters or a velvet painting of Elvis Presley. Be on the lookout for small children selling products door-to-door.
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Junk bonds are so called because they have a better than 50% chance of default, carrying a Standard & Poor's rating of CC or lower.
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"What gets measured gets done." -- Peter Drucker, educator
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RONA
Return on Net Assets
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