1. The financial system system's is is to help match one person's saving with person's investment. Two markets that are the one sings of the financial system is the bond market, through the local corporations, the federal government, or state and local local government sborrow, and the stock market, Through which corporations sell ownership shares. Two financial salys are banks, who take in deposits and use the deposits to make loans, and the mutual funds, and who sell shares to the public and use the slys to buy a portfolio financial assets.<br><br>2. It is is important for people who own stock and bonds to in-the-day sowns holds because then will have only a small stake in each asset, who-let-sees risk. Mutual funds make such such divers easy by-allowing a small investor to purchase parts of the insins of stocks and bonds.<br><br>3. National saving is the amount of a nation's income is that not spent on the silon siu s. Private saving is the amount of income that households have have left after paying for their taxes and paying for for households. Public saving is the amount of the amount of revenue revenue the government has left after pay for its spending. The three s are s are because the national savings private saving plus public saving.<br><br>4. Investment refers to the purchase of new capital, such as as equipment or buildings. It is equal to national saving in a closed economy.<br><br>5. A change in the tax code that edit private insinis expansion of the for special accounts that let people to shelter some of the sans saving from the taxation. This would increase the supply of loanable funds, lower interest rates, and increase investment.<br><br>6. A budget budget sith swhen government spends more than than it at the in revenue. Because a budget budget budget snout snun, it raises interest rates, reduces private investment, and the ness of the sands reduces economic growth. ...
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