FM Exam Flashcards
A Financial Institution that accepts deposits, offers checking account services, makes various loans and offers basic financial products like certificate of deposits (CDs) and savings accounts to individual and small businesses.
Commercial Banks
Are cooperative associations whose members have a common bond, It is a not-for-profit financial institution that accepts deposits, makes loans and provides a wide array of other financial services and products
Credit Union
Is a Financial Vehicle that pools assets from shareholders to invest in securities like stocks, bonds, money market instruments and other assets, They are operated by professional money managers , who allocate the fund’s assets and attempt to produce capital gains or income for the fund’s investors
Mutual Funds
Are retirement plans that accumulates capital to be paid out which is managed by corporations or government agencies
Pension Fund
Bring together people and organizations needing money with those having surplus funds, these are any location or system that enables traders of financial instruments, such as derivatives, bonds, shares, different global currencies to transact
FINANCIAL MARKET
Is a type of risk that cannot be eliminated through diversification
Non-diversifiable Risk
The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today
FUTURE VALUE
Monetary charge for borrowing money generally expressed as a percentage, such as an annual percentage rate
INTEREST
Series of periodic payments or receipts usually made in equal amounts.
ANNUITY
The term which means that the money available at the present time is worth more than the same amount in the future due to its potential earning capacity
TIME VALUE OF MONEY
Is a long term contract under which a borrower agrees to make payments of interest and principal, on specific dates to its holders
BOND
It is sometimes referred to as government bonds
TREASURY BOND
This refers to the annual interest payment divided by the bond’s current price
CURRENT YIELD
The interest rate that would exist on a riskless security if no inflation were expected, and it may be thought of as the rate of interest on short-term treasury securities in an inflation-free world
Wla pa ko kabalo
Is a letter-based credit scoring schem used to judge the quality and credit-worthiness of a bond
BOND RATING