Deck 6

Question 1

foreign exchange

Answer 1

the conversion of one currency into another currency

Question 2

international trade

Answer 2

the exchange of goods and services between countries

Question 3

import

Answer 3

goods and services purchased from another country

Question 4

export

Answer 4

goods and services sold to another country

Question 5

credit card

Pros

Answer 5

• convenience
• credit building
• rewards and other perks
• theft protection
• online shopping

Question 6

stock symbol

Answer 6

A stock symbol is like a company’s nickname on the stock market. It helps people easily talk about and buy stocks of a company.

Question 7

credit card

Cons

Answer 7

• overspending and debt
• fraud
• fees
• paying interest

Question 8

Why do we need to save money?

Answer 8

• big purchases (like phone, education, car, house)
• emergencies
• unexpected expenses
• investment

Question 9

What to do with money?

Answer 9

• spending
• saving
• donating

Question 10

CEO

Answer 10

Chief Executive Officer is the top person in charge of the whole company.
CEO makes important decisions, like what products the company will make, how many people they will hire, and how to spend their money.

Question 11

stock price

Answer 11

A stock price is like the price tag on a company in the stock market. It tells you how much money one tiny piece (or share) of that company costs.

Question 12

industry

Answer 12

An industry groups together companies that make similar things or offer similar services.

Question 13

compound interest

Answer 13

Compound interest is when you earn interest on both the money you’ve saved and the interest you earn.

Question 14

market cap

Answer 14

The market cap is the value of a company, based on the total value of all its shares together.
A higher market cap means is a company is larger in terms of total value.
Market cap = number of shares x Price per share

Question 15

PEG ratio

Answer 15

The price/earnings to growth ratio considers both how much the company earns now and how much it’s expected to grow in the future.
A lower PEG ratio means a company is undervalued or cheaper to buy.

Question 16

EBITDA

Answer 16

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) tries to show a basic picture of how much money a company is making from its core operations, like selling products or services.

Question 17

P/E ratio

Answer 17

Price-to-Earnings ratio tells you how much investors are willing to pay for every dollar of profit the company makes.
A lower P/E ratio means a company is better buy.
P/E ratio = Price of one share / Company’s earnings per share

Question 18

bank

Answer 18

A bank is a business that accepts and holds money for people.
Banks pay interest in return for holding money.

Question 19

annual dividend yield

Answer 19

A company’s annual dividend yield is the percentage of a company’s stock price that it pays out to its shareholders every year in the form of dividends.

Question 20

How does bank make money ？

Answer 20

Banks pay interest for holding money, and make money by loaning money out to other people and business at a higher rate of interest.