Brainscape's Knowledge GenomeTM

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


See full index

Economics Midterm > Unit 4 Ch. 10-11 > Flashcards

Unit 4 Ch. 10-11 Flashcards

0
Q

Medium of exchange

A

Anything that is used to determine value during the exchange of goods and services

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

Money

A

Anything that serves as a medium of exchange, a unit of account, and store a value

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

Barter

A

The direct exchange of one set of goods or services for another

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

Unit of account

A

A means for comparing the values of goods and services

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

Store of value

A

Something that keeps its value if it is stored rather than used

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

Currency

A

Coins and paper bills used as money

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

Commodity money

A

Objects that have value in themselves and that are also used as money

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

Representative money

A

Objects that have value because the holder can exchange them for something else of value

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

Fiat money

A

Money that has value because the government has ordered that it is an acceptable means to pay debt

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

Bank

A

An institution for receiving, keeping, and lending money

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

National bank

A

A bank chartered,or licensed, by the national government

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

Bank run

A

Widespread panic in which great numbers of people try to redeem their paper money

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

Greenback

A

Paper currency issued during the civil war

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

Good standard

A

A monetary system in which paper money and coins are equal to the value of a certain amount of gold

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

Federal reserve system

A

The nations central banking system

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

Central bank

A

Bank that can lend to other banks in times of need

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

Member bank

A

Bank that belongs to the federal reserve system

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

Federal reserve note

A

The national currency we use today in the United States

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Great Depression

A

The severe economic decline that began in 1929 and lasted for more than a decade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Federal deposit insurance corporation

A

The government agency that insures customer deposits if a bank fails

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Money supply

A

All the money available in the United States economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Liquidity

A

The ability to be used as, or directly converted to, cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Demand deposit

A

The money in checking accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Money market mutual fund

A

A fund that pools money from small savers to purchase short-term government and corporate securities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Fractional reserve banking

A

A banking system that keeps only a fraction of funds on hand and lends out the remainder

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Default

A

A failure to pay back a loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Mortgage

A

A specific type of loan that is used to buy real estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Credit card

A

A card entitling its holder to buy goods and services based on the holders promise to pay for these goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Interest

A

The price paid for the use of borrowed money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Principal

A

The amount of money borrowed

30
Q

Debit card

A

A card used to withdraw money

31
Q

Creditor

A

Person or institution to whom money is owed

32
Q

Investment

A

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

33
Q

Financial system

A

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

34
Q

Financial asset

A

Claim on the property or income of a borrower

35
Q

Financial intermediary

A

Institution that helps channel funds from savers or borrowers

36
Q

Mutual fund

A

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

37
Q

Diversification

A

Spreading out investments to reduce risk

38
Q

Portfolio

A

A collection of financial assets

39
Q

Prospectus

A

An investment report to potential investments

40
Q

Return

A

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

41
Q

Coupon rate

A

The interest rate that a bind issuer will pay to a bond holder

42
Q

Maturity

A

The time at which payment to a bond holder is due

43
Q

Per value

A

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

44
Q

Yield

A

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

45
Q

Savings bonds

A

Low-denominations bond issued by the United States government

46
Q

Municipal bond

A

A bond issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks, and schools

47
Q

Corporate bond

A

A bond that a corporation issues to raise money to expand its business

48
Q

Securities and exchange commission

A

An independent agency of the government that regulates financial markets and investment companies

49
Q

Junk bond

A

A lower rated, potentially higher paying bond

50
Q

Capital market

A

Market in which money is lent for periods of less than a year

51
Q

Money market

A

Market in which the money is lent for periods of less than a year

52
Q

Primary market

A

Market for selling assets that can only be redeemed by the original holder

53
Q

Secondary market

A

Market for reselling financial assets

54
Q

Share

A

Portion of stock

55
Q

Equities

A

Claims of ownership in a corporation

56
Q

Capital gain

A

The difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller

57
Q

Capital loss

A

The difference between a lower selling price and a higher purchase price resulting in a financial loss to the seller

58
Q

Stock split

A

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

59
Q

Stockbroker

A

A person who links buyers and sellers of stock

60
Q

Brokerage firm

A

A business that specializes in trading stocks

61
Q

Stock exchange

A

A market for buying and selling stock

62
Q

OTC market

A

An electronic marketplace for stocks and bonds

63
Q

Nasdaq

A

American market for OTC securities

64
Q

Futures

A

Contracts to buy or sell at a specific date in the future at a price specified today

65
Q

Options

A

Contracts that give investors the choice to buy or sell stock and other financial assets

66
Q

Call option

A

The option to buy shares of stock at a specified time in the future

67
Q

Put option

A

The option to sell shares of stock at a specified time in the future

68
Q

Bull market

A

A steady rise in the stock market over a period of time

69
Q

Bear market

A

A steady drop in the stock market over a period of time

70
Q

S&P 500

A

Index that shows the price changes of 500 different stocks

71
Q

The Dow

A

Index that shows how certain stocks have been traded

72
Q

Great crash

A

The collapse of the stock market in 1929

73
Q

Speculation

A

The practice of making high risk investments with borrowed money in hopes of getting a big return

Economics Midterm (7 decks)

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