Submitted by: Submitted by jenseng0
Views: 10
Words: 1842
Pages: 8
Category: Other Topics
Date Submitted: 10/12/2016 09:09 AM
Financial nstitutions arkets 1,2,7,9,10)
I
& M
(
● As .S. nterest ates ncrease, ore lobal ash low
U i
r
i
m g
c
f
○ Foreign ountries ant o uy onds or igher eturn
c
w t b b
f h
r
● Y
= C + S
○ Y s ncome
i i
○ C s xpenses
i e
○ S s avings
i s
■ No inancing hen breakeven udget nit)
f
w
Y C = 0 (
b
u
■ Invested hen , surplus udget nit)
w
S > 0 Y > C (
b
u
■ Need nvestors hen , deficit udget nit)
I
w
S < 0 Y < C (
b
u
● If ountry xperiences nflation, ncreased rices, he mount f xports ill ecrease
a c
e
i
i
p
t a
o e
w d
○ China as uch arge urplus ut an’t ake o taly /c ould ouble heir
h s
a l
s
b c
t
t I b w
d
t
economy
● Savers: 1 ouseholds/individuals
# h
■ #2 irms
f
■ #3 overnments
G
■ #4 oreigners
F
○ S
> 0
● Borrowers: 1 irms
# F
■ #2 overnments
G
■ #3 ouseholds
H
■ #4 oreigners
F
○ S
< 0
● Savers eed ay o eet orrowers: his an appen ays
n
a w t m B
t c h
2 w
○ Direct inance avers unds low irectly nto he inancial arkets nd each
F
s
f
f d
i t f
m
a r
borrowers
○ Indirect inance avers unds low nto n ntermediary ho ring he unds o he
F
s
f
f i a i
w b
t f
t t
borrowers most opular n he .S. /c anks ave uch arge mpact n
(
p
i t U b b
h
s
a l
i
o
economy)
● Financial ntermediaries: reate rust etween nvestors nd enders assets n conomy
I
c
t
b
i
a l
(
i e
is 37.46 rillion)
$
T
○ Depositories unds enerated rom eposits
f
g
f
d
■ Commercial anks
B
●...