Chapter16-19 Money&Banking, Households, Workers and Trade union

Money: an item which is generally __________ as a means of ________.

__________ banks: banks which aim to make a ______ by providing a range of banking services to __________ and firms.

LIQUIDITY

• Being able to turn an asset into cash slowly without incurring a loss.

• The ability to convert an asset into profit quickly without a loss.

• Being able
  to turn an asset into cash quickly without a loss.

• Being able to turn cash into an asset quickly without losing any value.

A government-owned bank which provides banking services to the government and commercial banks and operates monetary policy.

• State owned bank

• Government owned bank

• Central Bank

• Bank

__________ income is income after income ___ has been deducted and state ________ received.

Wealth: a _____ of assets including money held in bank accounts, ______ in companies, __________ bonds, cars and property.

RATE OF INTEREST

• a charge for borrowing money and a payment for lending money.

• fee for saving money and a reward for spending money.

• cost for lending money and a charge for borrowing money.

• an amount earned from investments and deposits in the market.

Average propensity to consume (APC)

• the percentage of government income used for spending.

• the total amount of money spent by
  all households annually.

• the proportion of household income
  which is saved.

• the proportion of
  household disposable
  income which is spent.

Consumption: ___________ by households on consumer goods and ______.

SAVINGS RATIO

• the ratio of total savings to total consumption.

• the percentage of national income used for investment.

• the proportion of household disposable income that is saved.

• the proportion of household income that is spent.