Exam 7: Savings and Investment Process

When current savings of an economic unit exceed its direct investment in real assets, this is referred to as:

These occur when an economic unit's income exceeds its expenses, taxes, and real asset investments.

The federal government relies primarily on borrowing to support its various expenditure programs.

Estimates of "using up" plant and equipment for business purposes are called

Motivations for individuals to deposit money into a savings account include:

Capital consumption adjustment is also called depreciation.

All of the following encouraged individuals to enter into risky mortgages during the 2000's except:

Government spending on entitlement programs that must be funded according to existing law.

Expenditures for goods and services plus gross investments by federal, state, and local governments.

Fixed rate mortgages typically require 20% down payment.

Three factors usually influence a person's choice of savings medium. Which of the following is not one of them?

Income for the Federal Government does not come from:

Savings are the accumulation of cash and other financial assets and are generally classified into which of the following two categories?

This is an economic unit that generates savings.

Which of the following is the most liquid form of savings?

The accumulation of reserves in insurance and pension funds is referred to as what type of savings?

Personal savings are savings accumulated on a regular schedule for a specified length of time by prior agreement.

The corporate retention rate is simply another term for the corporate savings rate.

The first stage of financing for an entrepreneurial firm is called the start-up stage.

A home loan made to a borrower with a relatively high credit score indicating the likelihood that loan payments will be made as agreed to.