Bank: It is a type of institution that facilitates transactions related to borrowing and lending. It receives money from different individuals as deposits and provides interest on it. It uses its deposits to lend it to a needful person. It helps in controlling the money supply in the economy. Unemployment Rate: It is defined as the rate of unemployed people in an economy. All those people who are willing to work at the given wages but cannot find the job are known as unemployed. It is the ratio of unemployed to that of the labor force in the economy. Budget Balance: The budget is considered to be balanced when the revenue collected from tax and expenditures made by the government are equal. When it is a deficit it is represented by a negative value, when it is a surplus it is represented by positive value and in the case of a balanced budget it is zero.

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Chapter 17, Problem 3P

To determine

Concept Introduction:

Bank: It is a type of institution that facilitates transactions related to borrowing and lending. It receives money from different individuals as deposits and provides interest on it. It uses its deposits to lend it to a needful person. It helps in controlling the money supply in the economy.

Unemployment Rate: It is defined as the rate of unemployed people in an economy. All those people who are willing to work at the given wages but cannot find the job are known as unemployed. It is the ratio of unemployed to that of the labor force in the economy.

Budget Balance: The budget is considered to be balanced when the revenue collected from tax and expenditures made by the government are equal. When it is a deficit it is represented by a negative value, when it is a surplus it is represented by positive value and in the case of a balanced budget it is zero.

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