Where Y Is GDP, C Is Consumption, T Is Net

question 54

Multiple Choice

Where Y is GDP, C is consumption, T is net taxes and G is government spending, if there is no international trade, then public saving equals:

• A)G - T
• B)Y - G
• C)Y + T - G
• D)Y - T

Understand why debt securities are often referred to as fixed-income securities.

Understand the implications of subordination clauses and collateral in the safety and valuation of bonds.

Calculate the intrinsic value of a bond given its yield to maturity and coupon rate.

Define structured financial instruments and their purposes, including CDOs, SIVs, and CDSs.

---

Definitions:

Sample Mean

The average value of a set of data points taken from a larger population, used as an estimate of the population mean.

Sample Standard Deviation

A measure of the amount of variation or dispersion of a set of values in a sample.

Mean Salary

The average income earned by employees in a specific group, calculated by dividing the total salary by the number of individuals.

Net Weight

The weight of a product without any packaging or container, essentially the weight of the goods alone.