Business Finance by Les Dlabay, James L. Burrow

By Les Dlabay, James L. Burrow

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For whom will the products and services be produced? TYPES OF ECONOMIC SYSTEMS © GETTY IMAGES/PHOTODISC The way a country makes the three economic decisions determines the type of economy it has. In a traditional economy, economic decisions are made in much the same way they always have been. There is very little government influence or control in a traditional economy. The basic needs of individuals and families are unchanged for generations. They do the same work using many of the same tools and procedures that their ancestors did.

S. federal government issues four main types of debt securities. 1. S. savings bonds 3. Treasury notes 2. Treasury bills 4. Treasury bonds State and Local Government Borrowing Many local governments issue bonds to finance various public service projects. A municipal bond is a debt security issued by a state or local government. These bonds are commonly issued by states, cities, counties, and school districts. While municipal bonds usually pay lower interest than most other investments, these can still be very attractive for two reasons.

Visual Communication Conduct a survey of people to obtain their opinions about which types of taxes are most appropriate to raise government revenue. Prepare a summary data table with your findings. 1 FINANCE IN SOCIETY 1. A financial system involves financial activities among individuals, businesses, and government. Major factors that affect financial activities are changing economic conditions, government regulations, and global business activities. 2. The two major types of financial markets are money markets and capital markets.

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