COMM 308 Chapter Notes - Chapter 1: Savings Account, United States Treasury Security, Commercial Paper
3 Nov 2018
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Finance: the study of how and under what terms savings (money) are allocated between lenders and borrowers. It examines not only how resources are allocated, but also under what terms and through what channels the allocations are made. Financial securities: financial contract for when funds are transferred. 3 major domestic groups in our economy: (cid:1872) (cid:1870)(cid:1872)h=(cid:1871)(cid:1871)(cid:1872)(cid:1871) (cid:1853)(cid:1854)(cid:1872)(cid:1871: individuals (household sector, businesses, government. The tangible things that compose personal and business assets. Personal assets are: the value of houses (residential structures, the land the houses are on, the major appliances in the houses and cars (consumer durables) Business assets are: office buildings, factories, mines (non-residential structures, machinery and equipment in those structures, the land they are on, stock or inventories of things waiting to be used or sold. National balance sheet accounts (nbsa): collect financial data on the major agents in the financial system and then track the borrowing and lending between these agents.
