Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > Financial Markets > Flashcards

Financial Markets Flashcards

1
Q

Investment

A

The act of redirecting resources from being consumed today so that they create benefits in the future; the use of assests to earn income or profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Financial System

A

The system that allows the transfer of money between savers and borrowers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Financial Asset

A

Claim on the property or income of a borrower

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Financial Intermediary

A

Institution that helps channel funds from savers to borrowers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Mutual Fund

A

Fund of savings that pools the savings of many individuals and invests this money in a variety of stocks, bonds and other financial assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Finance Companies

A

Make loans to consumers and small businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Life Insurance

A

Provides financial protection for the family and other beneficiaries of the insured.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Pension Funds

A

Income that a retiree recieves after working a certain number of years or reaching a certain age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Diversification (and its importance)

A

The spreading out of of investments to reduce risk. dont put all your eggs in one basket

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Portfolio

A

Collection of financial assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Return

A

The money an investor recieves above and beyond the sum of money they initially invested

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Prospectus

A

Investment report to potential investors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How do lenders offset risky loans?

A

By charging higher interest rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Coupon Rate

A

The interest rate that a bond issuer will pay to a bondholder

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Maturity

A

The time at which payment to a bondholder is due

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Advantage of a municipal bond

A

Tax free

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Par Value

A

The amount that an investor pays to purchase a bond and that will be repaid to the investor at maturity

18
Q

Yield

A

The annual rate of return on a bond if the bond were held to maturity

19
Q

Savings bond

A

Low denomination bond issued by the US government

20
Q

Corporate Bond

A

Bond that a corporation issues to raise money to expand its business

21
Q

Junk Bonds

A

High risk bond that gained popularity in the 1980s and 1990s

22
Q

Securities and Exchange Commision

A

Independent agency of the gov that regulates the financial markets nad investment companies

23
Q

Bear Market

A

Steady drop in the market over a period of time

24
Q

Bull Market

A

Steady rise in the market over a period of time

25
Q

Municipal Bond

A

Bond issued by a state or local government or municipality to finance such improvements as highways, schools, etc.

26
Q

Share

A

Portion of a stock

27
Q

Capital Gain

A

The difference between the low price you pay for a stock and the high price you sell it for.

28
Q

Capital Loss

A

The difference between the high price you pay for a stock and the low price you sell it for.

29
Q

Stock Split

A

The division of a single share of stock into more than one share

30
Q

Stockbroker

A

Person who links buyers and sellers of stock

31
Q

Brokerage Firm

A

Business that specializes in trading stocks

32
Q

Stock Exchange

A

A market for buying and selling stock

33
Q

NASDAQ

A

Market that specializes in American high-tech and energy stocks

34
Q

OTC Market

A

Electronic marketplace for stock that is not listed or traded on an organized exchange

35
Q

Dow Jones Industrial Average (The Dow)

A

Index that shows how certain stocks have traded

36
Q

Standard and Poor’s 500 (S & P 500)

A

Index that shows the price changes of 500 different stocks

37
Q

Great Crash

A

The collapse of the stock market in 1929

38
Q

Treasury Bill

A

Government bond that is repaid within 3 months to 1 year

39
Q

Treasury Note

A

Government bond that is repaid within 2 to 10 years

40
Q

Treasury Bond

A

Government bond that can be issued for as long as 30 years

41
Q

US Savings Bond

A

Low-denomination bond issued by the United States government

Economics (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions