ACC 117 Lecture Notes - Lecture 7: Corporate Finance, Durable Good, International Finance
Document Summary
Finance is the study of how and under what terms savings (money) are allocated between lenders and borrowers. Allocated how to divvy up resources. Whenever funds are transferred, a financial contract comes unto existence, these are called financial securities. Three major domestic groups in our economy are: Real assets are tangible things that compose personal and business assets. Major appliances and cars are referred to as consumer durable because they last. Finance is essentially the management of an entity"s balance sheet. Financial assets are a claim one individual or institution has on another. Two major financial assets are: the market value of investments in shares and the. Negative financial position means you are in debt market value of investments in insurance and pension. Household sector is the primary provider of funds to businesses and government. Financial intermediaries are entities that invest funds on behalf of others and change the nature of the transactions.
