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Explain the financial system terms definitions.
The Financial System Definitions:
Wealth
It is sum of Current Savings and Accumulated Savings
Financial asset
Paper claim which entitles the buyer to a future claim by the seller.
Physical asset
Claim onto a tangible object (as home and car, etc.)
Liability
A need to pay income into the future (as Car loan and mortgage etc.)
Transaction costs
Expenses of putting mutually and executing a deal
Financial risk
Uncertainty regarding future outcomes that involve financial losses and gains.
A type of auction in which the highest bidder is rewarded the object, but all bidders pay the auctioneer their bids. This differs from traditional first price auctions in which onl
An equilibrium refinement provides how of choosing one or many equilibria from among several in a very game. several games might contain many Nash equilibria, and therefore supply
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Another term for a preserved bid auction in which bidders simultaneously submit bids to the auctioneer with no knowledge of the amount bid by other member. Usually, the uppermost b
what will be the best strategy for a bidder in an auction comprised of four bidders?
For the section on dynamic games of competition, you can begin by asking if anyone in the class has played competi- tive tennis (club or collegiate or better); there is usually one
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