The Value of Money Over Time Flashcards
1
Q
Future Value
A
the value of an initial investment after a specified period of time at a stated rate of interest
2
Q
Inflation
A
a general price increase in the economy
3
Q
Liquidity
A
a measure of how easily assets can be converted into cash
4
Q
Present Value
A
the cash value, today, of future returns on income after adjustments are made for risk
5
Q
Risk
A
uncertainty about the future
6
Q
Securities
A
company assets guaranteed to lenders to ensure repayment of a loan
