1. It is a financial market where essentially short term capital is raised -- those with excess money lend to those who have insufficient for their needs. 2. According to the Keynesian theory, firms and households will attempt to run down the excess money balances they are being forced to hold by buying bonds. 3. In the Keynesian model, wealth holders attempt to spend their excess money balances on bonds, thereby forcing down interest rates. 4. In the monetarist case, wealth holders attempt to spend their excess money balances on all types of assets, including physical goods. 5. Although there are no perfect solutions, there are some ways to avoid handing over all of this excess money to the taxman. 6. An enormous amount of the excess money is finding its way into the stock market. 7. A. Bull markets need liquidity in the form of excess money. 8. Bush has repeatedly said his administration will not use excess Social Security money for other programs. 9. But recovering the excess withheld money is often difficult enough to deter both individuals and institutional investors. 10. Currently, a company can use excess money in pension funds only to pay for health benefits of retirees. |