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October 30, 2024 

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FINANCIAL INTERMEDIARY: An intermediary matches up buyers and sellers in a market, is a go-between producers and consumers. A financial intermediary is one that matches up buyers and sellers in financial markets that trade legal claims such as stocks and bonds. Banks are among the most important financial intermediaries in the economy. Others include insurance companies, stock brokers, and mutual fund companies.

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CREDIT: The promise of future payment in exchange for money, goods, services, or anything else of value. Car loans, mortgages, credit cards, corporate bonds, commercial paper, and government securities are all forms of credit. In fact, credit is an extremely wide-spread and critical part of our economy. About one-third of the stuff consumers buy, and nine-tenths of business expenditures is on credit. Most business capital, and consumer car and home purchases would be impossible without credit. Moreover, given the time lapse between paying for inputs and selling output, few businesses could produce much without credit.

     See also | financial markets | loan | money | exchange | corporate bond | commercial paper | government security | capital market | money market |


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CREDIT, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: October 30, 2024].


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KEYNESIAN AGGREGATE SUPPLY CURVE

An aggregate supply curve--a graphical representation of the relation between real production and the price level--that reflects the basic principles of Keynesian economics. The Keynesian aggregate supply curve actually comes in two versions. The basic version is reverse-L shaped, with a horizontal segment connected to a vertical segment at a sharp corner. The modified version is also reverse-L shaped, but the vertical and horizontal segments have positive slopes and connecting corner is rounded. An alternative is the classical aggregate supply curve.

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