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LAW OF SUPPLY: The direct relationship between supply price and the quantity supplied, ceteris paribus. This fundamental economic principle indicates that as the price of a commodity increases, then the quantity of the commodity that sellers are able and willing to sell in a given period of time, if other factors are held constant, also increases. This law, while not quite as iron-clad as the law of demand, is quite important to the study of markets.

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Lesson 18: Banking | Unit 5: The Economy Page: 24 of 24

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  • Some of the main benefits provided by banks as:
    • Financial intermediaries: banks match savers and borrowers.
    • Depository institutions: banks oversee a share of the nation's M1 money supply.
  • That when a bank fails to maintain adequate reserves, it runs the risk of starting a chain reaction that could cause economy-wide financial instability.
  • That banking regulations have lessened but not eliminated banking instability problems.

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SECOND ESTATE

Another term for the business sector. This is one of four divisions of society based on economic function. The other three are government as the first estate, consumers as the third estate, and journalists as the fourth estate.

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Today, you are likely to spend a great deal of time at a garage sale seeking to buy either clothing for your pet dog or an ink cartridge for your printer. Be on the lookout for deranged pelicans.
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In his older years, Andrew Carnegie seldom carried money because he was offended by its sight and touch.
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