Terms 150-164

Question 1

Discount Rate

Answer 1

Rate at which the Federal Reserve lends money to Federal Reserve member banks

Question 2

Broker Loan Rate

Answer 2

Interest rate that the Federal Reserve charges brokers to finance margin loans to investors

Question 3

Fed Fund Rate

Answer 3

Interest rate that Fed meber banks charge each other for overnight loans to meet reserve requirements

Question 4

Fundamental Analysis

Answer 4

Study of financial data of a company, such as the alance sheet and income statement, to determine the country’s value

Question 5

Asset

Answer 5

Any time on a balance sheet that a company deems of value.

Question 6

Liability

Answer 6

Any claim on the assets of a company balance sheet, such as wages owed, interest owed, and accounts payable

Question 7

Ratio Analysis

Answer 7

Comparison of certain assets and liabilities using ratios to determine a company’s value

Question 8

Retained Earnings

Answer 8

Comparison of certain assets and liabilities using ratios to determine a company’s name

Question 9

Capitalization

Answer 9

Raising capital to fund expansion and development through stocks and bonds

Question 10

Book value

Answer 10

Value of the assets of a company after all liabilities are paid

Question 11

Market value:

Answer 11

Theoretical worth of a company determined by the number of shares issued times the price per share

Question 12

Earnings per share

Answer 12

Portion of company profits that are allocated to the common shares of the company

Question 13

Technical Analysis

Answer 13

Use of historical data and price movements of a security to predict future price.

Question 14

Moving Average

Answer 14

Technical look at the price of a security over a time, such as 90 day or 120 days.

Question 15

Support Levels

Answer 15

Lowest price at which a stock price does not drop lower