In this lesson, our instructor Jibin Park gives an introduction on saving, investment and the financial system. He discusses the savings-investment spending identity, budget surplus and deficit, capital inflows and outflows, tasks of a financial system, types of financial assets, financial intermediary, mutual funds, pension funds and life insurance, and banks.
The savings-investment spending identity is such that savings = investment for the economy as a whole
If the government spends more than it collects in revenue, there is a budget deficit
If the government collects more revenue than it spends, there is a budget surplus
National savings = Private savings + Budget Balance
The three tasks of a financial systems are to reduce transaction costs, reduce risk and provide liquidity
Types of financial assets include bonds, loan-backed securities, stocks and mutual funds
Other financial intermediaries include pension funds, life insurance, banks and credit unions
Saving, Investment & the Financial System
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.