Introduction to Investment Flashcards
is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.
Interest Rate
is the initial size of a loan and can also refer to a loan balance that is still outstanding.
Principal Amount
are physical and measurable assets that are used in a company’s operations like property, plant and equipment.
Tangible Assets
refer to any mechanism used for generating future income.
Investment
it is an asset or item acquired with the goal of generating income or appreciation.
Investment
Consists of money placed by an individual or a company into financial institutions or banks for safekeeping.
Bank Deposits
are suitable for people who have a definite income and are looking to save money: The funds on this account are easily accessible.
Savings Account
on this account, the bank does not pay any. interest on the balance.
Checking or Current Account
account is a type of bank account where your money is locked in for a period of time.
Time Deposit Account
Is a means of protection from a financial loss. It is a reimbursement against losses of fire, typhoons, car accidents. plane crash accidents, death etc.
Insurance Company
This insurance pays money in a large amount to the surviving family on the insured person’s death or after a certain period.
Life Insurance
This insurance provides only death benefit payment for a fixed period. If the policyholder does not die within the term period, the coverage ends, and the policyholder gets nothing.
Term Life Insurance
Provides lifelong coverage or until the insured is 100 years old, with death benefit and an investment component. This type of insurance eams dividends, the policyholder can borrow or withdraw the cash. partially or fully.
Whole Life Insurance
Provides death, disability, and living benefits with investment component. In this type of insurance, the policyholder can choose to invest in various assets. including bonds, stocks, and money market funds.
Variables Universal Life Insurance (VUL)
This type of insurance covers or pays for medical, surgical, prescription drug and sometimes dental expenses incurred by the policyholder.
Health Insurance
is a property insurance that covers damage and losses caused by fire. It covers a policyholder against fire loss. These are fires brought by faulty wirings, lightning, gas explosions, and other natural disasters.
Fire Insurance
This type of Insurance is a combination of savings and at the same time an insurance..
Educational Insurance
is purchased by vehicle owners to mitigate costs associated with getting into an auto accident.
Car Insurance
covers anyone outside your car and those riding with you who aren’t your employees or a family member within the second-degree consanguinity or affinity are also considered third party persons, so they are covered by the insurance
Compulsory Third Party Liability Insurance
This type of insurance offers wider range of coverage that can protect you from all sorts of risks, although the coverage does depend on the insurance providers.
Comprehensive Car Insurance
Is the land and any permanent improvements attached to the land, whether natural or man-made including water, trees, minerals, buildings. homes, fences and bridges.
Real Estate
are exclusively used for private living quarters. A building that is used or suitable for use as dwelling or is in the process of being constructed or adapted for use as a dwelling.
Residential Estate
relates to any property used for business like commerce or activities like hospitals, warehouses. shopping centers, offices or any other places for business enterprise
Commercial Estate
refers to a place where the facilities and factory accommodation are provided by the government to the entrepreneurs to establish their industries. This estate provides all infrastructural facilities such as power, water, and lighting at a reasonable cost.
Industrial Estate
in the business sense, can refer to property, minus buildings, and equipment, which is designated by fixed spatial boundaries.
Land Estate
