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INCOME STATEMENT: A statement of the revenues, expenditures, and profit for a business, household, or government entity over a given period of time. An income statement also goes by the names profit and loss statement, earnings report, and operating statement. This is one of two key financial statements for an entity. The other is a balance sheet, which is a statement of assets, liabilities, and net worth at a given point in time.

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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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INFLATION CAUSES

Inflation, the persistent increase in the average price level, can be caused by an increase in aggregate demand or a decrease in aggregate supply. This suggests two basics sources, causes, or types of inflation--demand-pull inflation and cost-push inflation. While short-term bouts of inflation (up to several months) can result from anything (determinant) that might cause either increases in aggregate demand or decreases in aggregate supply, long-term inflation (a year or more) is possible ONLY through persistent increases in the money supply. As such, while demand-pull inflation and cost-push inflation are convenient ways to catalog the transmission mechanisms of inflation, the ultimate CAUSE of inflation is money.

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APLS

RED AGGRESSERINE
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Today, you are likely to spend a great deal of time looking for a downtown retail store looking to buy either a how-to book on fine dining or a coffee cup commemorating the first day of winter. Be on the lookout for the happiest person in the room.
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Paper money used by the Commonwealth of Massachusetts prior to the U.S. Revolutionary War, which was issued against the dictates of Britain, was designed by patriot and silversmith, Paul Revere.
"A ship ought not to be held by one anchor, nor life by a single hope. "

-- Epictetus, philosopher

AR(N)
A nth-order Autoregressive Process
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