Borrowers and Lenders: The Demand for and Supply of Funds (HSC SSCE Economics): Flashcards
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Price in the money market
Price in the money market
Interest rates
Liquidity definition
Liquidity definition
How easily an asset can be converted to cash
Three motives for holding money
Three motives for holding money
Transactions, precautionary, speculative
Mortgage
Mortgage
Loan for purchasing a family home
Security in mortgage context
Security in mortgage context
Asset (home) bank can claim if borrower defaults
Australian household debt to income ratio by mid-2019
Australian household debt to income ratio by mid-2019
190%
Two ways businesses raise funds directly
Two ways businesses raise funds directly
Issuing shares (equity) or bonds (debt)
Opportunity cost of holding liquid funds
Opportunity cost of holding liquid funds
Forgone returns (interest) from financial assets
Budget surplus
Budget surplus
When government revenue exceeds spending
What depositing in financial institutions means
What depositing in financial institutions means
Lending money to the institution