Examlex
Explain the purpose of a brokerage account and the 3 types of brokers.
Rational Expectations
The hypothesis that individuals form forecasts of future events based on past and current information in a consistent and unbiased manner.
Discretionary Policy
Refers to economic strategies and actions, such as changes in tax rates or government spending, opted by the government to manage the economy.
Passive Approach
An investment strategy that involves minimal buying and selling actions, typically focused on long-term investment in index funds and other diversified holdings.
Expansionary Monetary Policy
A policy by central banks to increase the money supply and decrease interest rates to stimulate economic growth.
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