ECON 102 Lecture Notes - Lecture 1: Jpmorgan Chase, Citigroup, Opportunity Cost
Document Summary
1/14 (introduction to us and world economies causes for collapse in 2008) assets= value of things you own (property, vehicles, etc) Accounting is basically accounting for what businesses do with assets. Liabilities= the value of things you owe. Net worth= the difference between assets and liabilities in value. Bank assets= most important asset for banks are the loans they make to others; fancy buildings and everything else included. Bank liabilities= deposits are debts owed to depositors after putting money in the bank. More mergers began to happen in the 80s, leading to 4 major banks (bank of america, wells. Stocks= the capital raised by a business or corporation through the issue and subscription of shares. Dow (30 largest companies in terms of their values) and s&p (500 companies) = indexes that collectively do the same thing as stocks. Home mortgages= mortgage is used either by purchasers of real property to raise funds to buy real estate.
