60 likes | 156 Views
Chapter 1 Section 2. The U.S. Economic System. Financial Markets. Mechanism that provides the means for purchasing and selling stocks, bonds, commodities, and other financial instruments. New York Stock Exchange NASDAQ Commodities – Fungible Derivatives. Financial Institutions.
E N D
Chapter 1 Section 2 The U.S. Economic System
Financial Markets • Mechanism that provides the means for purchasing and selling stocks, bonds, commodities, and other financial instruments. • New York Stock Exchange • NASDAQ • Commodities – Fungible • Derivatives
Financial Institutions • Commercial Banks • Credit Unions • Savings and Loan Associations
Non-Depository Institutions • Act as an intermediary between savers and borrowers. • Securities Exchange Commission (SEC) • Insurance Companies • Investment Bankers • Mutual Fund • Brokerage Firms
Business Incentives • How do incentives affect how you manage your personal finances? • Encourages specific behavior and helps to motivate individuals to take specific action • Workers – rewards, wages • Consumers – sales, loyalty programs
Gov’t Incentives • Producers – no taxes or lower taxes • Savers and Investors – tax deferment, tax free • Citizens – tax deductions, tax credits