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Essentials of Economics (Mankiw)- Chapter 18 Vocabulary
Saving, Investment, and the Financial System
6
Economics
Graduate
01/29/2012

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Term
financial system
Definition
The group of institutions in the economy that help to match one person's saving with another person's investment.
Term
financial markets
Definition
Financial institutions through which savers can directly provide funds to borrowers.
Term
bond
Definition
A certificate of indebtedness.
Term
stock
Definition
A claim to partial ownership in a firm.
Term
financial intermediaries
Definition
Financial institutions through which savers can indirectly provide funds to borrowers.
Term
mutual fund
Definition
An institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds.
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