10 Questions
What are the main types of financial institutions in the U.S. economy?
Commercial banks, credit unions, investment banks, and insurance companies
What are the three kinds of saving in the National Income Accounts?
Private saving, public saving, and foreign saving
What is the function of financial institutions in the economy?
To help match one person’s saving with another person’s investment
How do government policies affect saving, investment, and the interest rate?
Government policies can influence the level of saving, the amount of investment, and the interest rate through changes in taxation and spending.
What's the difference between saving and investment?
Saving is the act of not spending all of one's income, while investment is the use of saved funds to earn a financial return.
How does the financial system coordinate saving and investment?
By matching one person’s saving with another person’s investment
What are the main types of financial institutions in the U.S. economy?
Commercial banks, credit unions, investment banks
What factors affect the supply and demand for loanable funds in the market?
Interest rates and government borrowing
How do government policies affect saving, investment, and the interest rate?
By implementing fiscal and monetary policies
What's the relationship between saving and investment in the National Income Accounts?
They are equal when the economy is in equilibrium
Test your understanding of saving, investment, and the financial system in macroeconomics with this quiz. Covering concepts from Mankiw's Principles of Macroeconomics and other relevant sources, this quiz will help reinforce your knowledge of financial institutions and their role in the economy.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
