内容文稿经济学宏观chapter.pptxVIP

Chapter 7;1. Finance v.s. Money 2. Physical Capital v.s. Financial Capital 1. Finance v.s. Money - The study of finance looks at how households and firms obtain and use financial resources and how they cope with the risks that arise in this activity. - The study of money looks at how households and firms use it, how much of it they hold, how banks create and manage it, and how its quantity influences the economy. 2. Physical Capital v.s. Financial Capital - Physical capital is the tools, instruments, machines, buildings, and other items that have been produced in the past and that are used today to produce goods and services. - The funds that firms use to buy physical capital are called financial capital. ;?Capital and Investment -Gross investment is the total amount spent on purchases of new capital and on replacing depreciated capital. -Depreciation is the decrease in the quantity of capital that results from wear and tear and obsolescence. -Net investment is the change in the quantity of capital. Net investment = Gross investment ? Depreciation;?Wealth and Saving - Wealth is the value of all the things that people own. - Saving is the amount of income that is not paid in taxes or spent on consumption goods and services. - Saving increases wealth. - Wealth also increases when the market value of assets rises—called capital gains—and decreases when the market value of assets falls—called capital losses. ? Financial Capital Markets -Saving is the source of funds used to finance investment. -These funds are supplied and demanded in three types of financial markets: 1. Loan markets 2. Bond markets 3. Stock markets ;1. Loan Markets - Bank Loans (Short-term Long-term) - Mortgage: A legal contract that gives ownership of a home to the lender in the event that the borrower fails to meet the agreed loan payments. 2. Bond markets - A bond is a promise to make specified payments on specified dates. - Issued by firms Governments (Short-term Long-term) - Mortgage-Ba