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MATCHING
-Renal pyramids
Equilibrium Interest Rate
The interest rate at which the demand for funds (borrowing) equals the supply of funds (saving), resulting in a stable market condition.
Money Demand
The desire to hold cash or liquid assets based on the trade-off between the liquidity provided by holding money and the foregone interest earnings from not investing it.
Financial Assets
Assets that derive value from contractual claims, such as stocks, bonds, bank deposits, and other investments.
Interest Rate
The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.
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