I.  Bellwork on iLearn

• 22.1WS

II.  Objectives:

• Describe the relationship between savings and investment spending
• Explain how financial intermediaries help investors achieve diversification
• Identify the purpose of the four principal types of financial assets: stocks, bonds, loans, and bank deposits

II.  Discussion:  Saving, investment, and the financial System p2 23-230

The Financial Sector – Macroeconomics 4.1

A The Savings– Investment Spending Identity

B .Three Tasks of a Financial System

C Types of Financial Assets

D. Financial Intermediaries

Money and Finance: Crash Course Economics #11

IV.  Classwork Q&A

1. Write the formula for Total Income and Total Spending
2. Provide an explanation and a formula using simplification demonstrating the relationship  between Total Income and Total Spending
3. Distinguish between a financial and physical assets and provide examples
4. Explain  the 3 tasks a Financial System performs
5. List and define the purpose for each of the 4 types of financial assets
6. Explain the purpose of financial intermediaries’
7. Provide and explain the function of the 4 most important financial intermediaries’

 

AP Economics