Exam 16: The Balance of Payments: Net Exports and International Capital Flows

Saving for protection against unexpected setbacks,such as the loss of a job or a medical emergency,is called ________ saving.

In an economy without international trade,gross investment must equal ________ saving.

Life-cycle saving is saving

Claims to partial ownership of a firm are called

The change in wealth during a period equals

A country's current account balance equals

The price of a share of corporate stock varies over time depending upon stockholders' expectations about the future

The current price of a share of stock increases when

Capital outflows minus capital inflows are called

Suppose a machine that has a useful life of only one year costs $5,000,and that the additional revenue from the output of this machine is expected to be $6,100 after paying the operating costs.The expected rate of return on this machine is

If the annual interest rate is 1% (0.01),what is the present value of the future sum of $100 expected three years from today?

Assets minus liabilities equal

Charles has the following assets and liabilities: What is Charles' wealth?

Financial intermediaries are firms that

Another name for a country's trade balance is

Capital outflows are

The builder of a new movie theatre complex is trying to decide how many screens she wants.Below are her estimates of the number of patrons the complex will attract each year,depending on the number of screens available: After paying the movie distributor and meeting all other non-interest expenses,the owner expects to net $2.00 per ticket sold.Construction costs are $1,000,000 per screen.How many screens should be built if the real interest rate is 7%?

A dividend is a(n)

Saving to meet long-term objectives,such as retirement,university or college attendance,or to purchase a home,is called ________ saving.

Charles has the following assets and liabilities: What is the value of Charles' liabilities?