Across
- 4. the theory that asset prices reflect all publicly available information about the value of an asset
- 7. financial institutions through which savers can directly provide funds to borrowers
- 9. a shortfall of tax revenue from government spending
- 11. the income that households have left after paying for taxes and consumption
- 13. the accumulation of a sum of money in, say, a bank account, where the interest earned remains in the account to earn additional interest in the future
- 14. an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds
- 15. the total income in the economy that remains after paying for consumption and government purchases
- 16. a dislike of uncertainty
- 17. the reduction of risk achieved by replacing a single risk with a large number of smaller, unrelated risks
- 18. the market in which those who want to save supply funds and those who want to borrow to invest demand funds
- 19. risk that affects all companies in the stock market
Down
- 1. a decrease in investment that results from government borrowing
- 2. the tax revenue that the government has left after paying for its spending
- 3. the amount of money today that would be needed, using prevailing interest rates, to produce a given future amount of money
- 5. financial institutions through which savers can indirectly provide funds to borrowers
- 6. the path of a variable whose changes are impossible to predict
- 8. a claim to partial ownership in a firm
- 9. an excess of tax revenue over government spending
- 10. the amount of money in the future that an amount of money today will yield, given prevailing interest rates
- 12. a certificate of indebtedness