Structure of Financial Markets and Financial Assets (AQA A-Level Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Monetary economy
Monetary economy
Economy where goods/services bought & sold using money
Double coincidence of wants
Double coincidence of wants
Barter problem: both parties must want what the other offers
Medium of exchange
Medium of exchange
Money function enabling trade without barter
Token money
Token money
Modern money with no intrinsic value, accepted by confidence
Liquidity
Liquidity
Ease of converting asset to cash without loss of value
Shares
Shares
Undated financial assets representing ownership in a company
Bond coupon
Bond coupon
Fixed annual interest payment on a bond
Bond prices & interest rates relationship
Bond prices & interest rates relationship
Inverse: when interest rates rise, bond prices fall
Money markets vs Capital markets
Money markets vs Capital markets
Money: short-dated assets; Capital: long-dated debts & shares
Primary vs Secondary markets
Primary vs Secondary markets
Primary: new securities sold; Secondary: existing ones traded