extra: to understand better

Question 1

mutual fund

Answer 1

s a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.

Question 2

Real assets

Answer 2

are physical assets that have an intrinsic worth due to their substance and properties.

Question 3

residual claimant theory

Answer 3

after all factors of production/service have received their remuneration, the person/agent supposed to receive the left/residual amount

Question 4

Par value

Answer 4

is the value of a single common share as set by a corporation’s charter. It is not typically related to the actual value of the shares.

Question 5

dividends

Answer 5

a sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves).

Question 6

domestic currency

Answer 6

is that which is legal tender in the economy and issued by the monetary authority for that economy, or for the common currency area to which the economy belongs.

Question 7

originate-to-distribute (OTD)

Answer 7

(OTD) model of lending, where the originator of a loan sells it to various third parties, was a popular method of mortgage lending before the onset of the subprime mortgage crisis.