Lec07handout - Saving Investment and the Financial System...

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Saving, Investment, and the Financial System Slide #07 July 14 2010 1 Intro Macro
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Financial Institutions in the U.S. Economy Financial system Group of institutions in the economy That help match One person’s saving With another person’s investment Financial markets Financial institutions Savers can directly provide funds to borrowers 2 Intro Macro
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Financial Institutions in the U.S. Economy Financial markets The bond market Bond Certificate of indebtedness Time of maturity - at which the loan will be repaid Rate of interest Principal - amount borrowed Term - length of time until maturity Credit risk Tax treatment 3 Intro Macro
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