Chapter 10

Question 1

Liquidy

Answer 1

The availability of liquid assets to the market or company

Question 2

Financial intermediaries

Answer 2

Institution that helps channel funds from savers to borrowers

Question 3

Mutual funds

Answer 3

Pulls the savings of many individuals and invest the one dollar bill and a variety of stocks and bonds and other financial assets

Question 4

Life insurance companies

Answer 4

Provide financial protection of those who are insured

Question 5

Pension funds

Answer 5

And can you get after retiring

Question 6

Savings bond

Answer 6

Load domination bond issued by the United States government

Question 7

Treasury bonds notes and bills

Answer 7

Back by the full faith and credit of the government these are among the safest investments in terms of default risks

Question 8

Municipal bonds

Answer 8

A bond issued by state or local government to finance such improvements such as highways or public places

Question 9

Corporate bonds

Answer 9

Corporate issue these to raise money to expand. interest is text as ordinary income

Question 10

Junk bonds

Answer 10

Lower rates potentially higher paying bond. Investors probably will face issuing firms defaulting on their debt

Question 11

Primary markets

Answer 11

Selling financial assets that can only be redeemed by the original holder

Question 12

Secondary markets

Answer 12

Reselling financial assets

Question 13

Bull market

Answer 13

Steady rise in stock market overtime

Question 14

Bear market

Answer 14

Study drop in stock market overtime

Question 15

Dow Jones industrial average

Answer 15

Index that shows how certain stocks have traded

Question 16

S & p 500

Answer 16

Index that shows the price change of 500 different stocks