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Civics Honors > Final Exam Study Guide > Flashcards

Final Exam Study Guide Flashcards

1
Q

Eliminates the need to “time” the market when making an investment decision

A

Dollar cost averaging

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2
Q

The amount of money that you are paid for allowing a financial institution to use your money

A

Earned interest

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3
Q

Interest earned on interest

A

Compound interest

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4
Q

The most important personal finance principle

A

Pay yourself first

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5
Q

Appropriate ways for you to invest your money for the long term

A

Stocks, bonds, mutual funds

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6
Q

Relationship between time, money, and the rate of interest

A

Time value of money

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7
Q

Appropriate ways for you to save your money

A

Bank savings, money markets, bank cd’s

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8
Q

Personal finance principle based upon the adage about not putting all your eggs in one basket

A

Diversification

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9
Q

Helps you achieve your intermediate and long-term financial goals

A

Investing money

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10
Q

Helps you achieve your short-term financial goals and to prepare for an unforeseen financial emergency

A

Saving money

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11
Q

Largest corporation in the world due to its market capitalization

A

Apple

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12
Q

An example of a publicly traded corporation

A

McDonald’s

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13
Q

An example of a privately held corporation

A

Chick-Fil-A

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14
Q

Found by multiplying the total number of stock shares that a corporation has issued with the current price per share

A

Market capitalization

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15
Q

20% of all businesses in the U.S. are classified as this type of business organization; account for 90% of all the products sold and services provided

A

Corporation

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16
Q

Represents ownership in a corporation and a proportional share in the assets and profits of the issuing corporation

A

Stock

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17
Q

This stock exchange is one of the largest in the world and uses a combination of human floor traders and computers

A

NYSE

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18
Q

Tracks the performance of 30 of the largest and most widely held companies in the U.S.; most widely followed stock index in the world

A

DJIA

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19
Q

Second most widely followed stock performance indicator in the world

A

S&P 500

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20
Q

Completely computerized stock exchange

A

NASDAQ

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21
Q

Stocks of companies whose earnings are expected to grow at an above-average rate

A

Growth stocks

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22
Q

Pet Smart and Buffalo Wild Wings are examples of this type of stock

A

Mid-Cap stocks

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23
Q

Stocks that appreciate in value quickly when economic growth is strong and fall rapidly when economic growth is declining

A

Cyclical stocks

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24
Q

Stocks that remain stable during declines in the economy

A

Defensive stocks

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25
Q

Stocks of the most well established and financially sound companies

A

Blue-Chip stocks

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26
Q

Stocks of companies that pay regular and steadily increasing dividends

A

Income stocks

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27
Q

The real value of this type of investment is dependent upon the actual rarity of the item and the willingness of individuals to purchase it at the time of sale

A

Collectibles

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28
Q

Most common type of investment found in 401K’s, 403B’s, and Individual Retirement Accounts; two basic categories are actively managed and passively managed

A

Mutual funds

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29
Q

Type of investment that focuses upon the acquisition of property for the purposes of generating long term rental income or capital gains through the sale of the property

A

Real estate

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30
Q

Similar in structure to an I.O.U.; issuer promises payment over a specified period of time at an agreed upon rate of interest

A

Bonds

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31
Q

Current price of a single share of a company’s stock

A

Stock price

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32
Q

Portion of a company’s profit that is allocated to each outstanding share of stock

A

Earnings per share

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33
Q

Unique series of letters assigned to a security for trading purposes

A

Stock symbol

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34
Q

Helps an investor determine how expensive or inexpensive a stock is based upon its current price and its earnings per share

A

PE ratio

35
Q

Helps an investor determine a stock’s value while taking into account earnings growth

A

PEG ratio

36
Q

The total expected dividend payment from an investment

A

Dividend rate

37
Q

Shows how much a company pays out in dividends relative to its share price

A

Dividend yield

38
Q

Lowest price that a stock has reached during the last year

A

52 Week low

39
Q

Highest price that a stock has reached during the last year

A

52 Week high

40
Q

Next best alternative to a chosen activity

A

Opportunity cost

41
Q

Land, labor, and capital

A

Factors of production

42
Q

Are provided by lawyers, engineers, doctors, educators, etc.

A

Services

43
Q

Market structure where there is a single producer of a good or provider of a service

A

Monolopy

44
Q

Benefits consumers by providing them with a variety of goods at reasonable prices and producers by encouraging them to be as efficient as possible during the production process

A

Competition

45
Q

Examples include food, clothing, shelter, and water

A

Needs

46
Q

The fundamental problem within the study of economics

A

Scarcity

47
Q

Three basic economic questions are answered by following established traditions, customs, and cultural norms

A

Traditional system

48
Q

All of the potential things that could have been chosen but weren’t

A

Trade-offs

49
Q

Focuses upon large economic issues like inflation and unemployment

A

Macroeconomics

50
Q

Market structure where there are many producers selling identical products; are no barriers to either enter or exit the market

A

Perfect competition

51
Q

Tangible and physical objects that can be bought, sold, or traded

A

Goods

52
Q

Three basic economic questions are answered by the government

A

Command system

53
Q

Study of how individuals and nations allocate their scarce resources for the fulfillment of seemingly unlimited wants and needs

A

Economics

54
Q

Market structure that is dominated by a few large firms; some control over price and are significant barriers to both entry and exit

A

Oligopoly

55
Q

Focuses upon economic decision making at the individual person and individual business level

A

Microeconomics

56
Q

Three basic economic questions are answered through the interaction of supply and demand

A

Market system

57
Q

Market structure that has many firms with some product differentiation and some control over price; minimal restrictions on entry and exit into the market

A

Monopolistic competition

58
Q

Examples include a new iPhone X, Netflix subscription, and a diamond encrusted popsocket

A

Wants

59
Q

Three basic economic questions are answered through a combination of the interaction of supply and demand and regulations and economic intervention by the government

A

Mixed System

60
Q

Occurs when the quantity demanded is greater than the quantity supplied

A

Shortage

61
Q

Scarcity of these leads to the necessity of economic decision making

A

Resources

62
Q

Market clearing occurs at this point

A

Equilibrium

63
Q

Two categories of this are physical and financial

A

Capital

64
Q

Amount that producers are willing and able to produce

A

Supply

65
Q

Occurs when the quantity supplied is greater than the quantity demanded

A

Surplus

66
Q

Amount that consumers are willing and able to purchase

A

Demand

67
Q

Term that is synonymous with workers

A

Labor

68
Q

Factor of production that contains the natural resources necessary to produce goods and provide services

A

Land

69
Q

Includes entitlement programs such as social security, Medicare, and Medicaid

A

Mandatory spending items

70
Q

Total amount of money that is owed by the U.S.; currently in excess of $21 trillion

A

National debt

71
Q

Program established in 1935 as a way to provide benefits to retirees, dependent children, and the disabled; single largest annual budgetary expenditure

A

Social security

72
Q

Sales tax; have a greater economic impact on individuals that make less money

A

Regressive

73
Q

Includes spending on environmental protection, education, highway construction, food safety inspections, and flu vaccines

A

Discretionary spending items

74
Q

Single largest annual non-entitlement budget expenditure

A

Defense spending

75
Q

Single largest source of annual federal revenue

A

Personal income taxes

76
Q

Personal income taxes; have a greater economic impact on individuals that make more money

A

Progressive

77
Q

Type of rate charged by the Fed when member banks borrow money

A

Discount rate

78
Q

The current Chair of the Federal Reserve

A

Jerome Powell

79
Q

Type of government security that has a period of maturity that is less than one year

A

Treasury bills

80
Q

Type of government security that has a period of maturity that is greater than one year

A

Treasury notes

81
Q

Buying or selling of government securities initiated by the Federal Reserve

A

Open market operations

82
Q

Percentage of deposits that the Federal Reserve requires its member banks keep at the Fed

A

Reserve requirement

83
Q

Another name for the payroll tax that funds both social security and Medicare

A

FICA

Civics Honors (19 decks)

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