Voc 1

Question 1

Appreciate

Answer 1

increase in the value of an asset over time.

Question 2

Arbitrage

Answer 2

when someone buys something at a low price in one place and sells it at a higher price in another place to make a profit. It’s all about taking advantage of the price difference between two markets.

Question 3

Asset- backed security

Answer 3

financial product made by combining several types of loans, like car loans or credit card debt, into one bundle. Investors can then buy parts of this bundle.

Question 4

Asset:

Answer 4

anything valuable that a person or company owns, such as money, property or investment.

Question 5

Bank secrecy act:

Answer 5

law in the U.S. that requires banks to report large transactions and to watch for suspicious activity in order to prevent financial crimes such as money laundering fraud…

Question 6

Banker

Answer 6

a person employed by a bank.

Question 7

Be in debt

Answer 7

means you have a financial obligation to repay what you borrowed.

Question 8

Bear

Answer 8

refers to a market condition where prices are falling or expected to fall.

Question 9

Bear market:

Answer 9

period in which the prices are lowering or are expected to lower.

Question 10

Broker

Answer 10

person or firm that acts as an intermediary between buyers and sellers in financial markets.

Question 11

Building societies

Answer 11

financial institutions that help people save money and get loans to buy homes. They offer good interest rates on savings accounts and provide mortgages to help members purchase houses.

Question 12

Bull

Answer 12

refers to a market condition where prices are rising or expected to rise.

Question 13

Bull market:

Answer 13

period in which the prices are rising or expected to rise

Question 14

Buoyant market

Answer 14

refers to a market condition where prices are rising or are stable, and there is a strong demand for goods, services, or assets. It often indicates a healthy and optimistic economic environment.

Question 15

Call (option)

Answer 15

contract that allows you to buy a stock at a set price within a certain time. You pay a fee for this right and it’s a way to profit if you think the stock price will go up.

Question 16

Capital markets:

Answer 16

financial markets where long-term debt and equity securities like stocks and bonds, are bought or sold.

Question 17

Capitalization rate

Answer 17

real estate metric used to estimate how much return you can expect on a property based on it’s income and value. A higher capitalization rate generally means a better return on investment.

Question 18

Clearing

Answer 18

refers to the payment or benefits that an employee receives in exchange for their work or services. It can include wages, salaries, bonuses, and other perks like health insurance or retirement contributions.

Question 19

Closing price

Answer 19

last price at which a stock or asset was bought or sold before the market closed for the day.

Question 20

Collapse

Answer 20

when the value of stocks, markets, or an economy falls very quickly and dramatically, often causing financial trouble for investors and businesses.

Question 21

Collateralised debt obligation

Answer 21

bundle of different loans sold to investors. Some parts of the bundle are safer, while others are riskier, and investors earn money as people repay the loans. However, if too many loans go unpaid, CDOs can lose value, which is what happened during the 2008 financial crisis.

Question 22

Commercial bank

Answer 22

financial institution that provides a wide range of services to individuals and businesses, such as accepting deposits, giving loans, and offering checking and savings accounts.

Question 23

Cost of debts

Answer 23

is what a company pays in interest when it borrows money.

Question 24

Cost of debt ratio

Answer 24

shows how much a company spends on interest compared to how much money it has borrowed. A lower ratio means the company is paying less in interest relative to its debt which is generally a positive sign for investors.

Question 25

Cost of equity

Answer 25

return that a company must provide to its shareholders to compensate them for the risk they take by investing in the company.

Question 26

Credit

Answer 26

refers to the ability of a person or organization to borrow money or access goods and services with the promise to pay later. It can come in many forms, like credit cards or loans, and lenders want to know that you’re likely to pay them back before they lend you money.

Question 27

Credit default swap (CDS):

Answer 27

insurance for loans or bonds. If a borrower can’t pay back what they owe, the CDS protects the investor by paying them back for their loss, while the investor pays regular fees for this protection.

Question 28

Credit rating agency (CRA)

Answer 28

company that evaluates how likely borrowers are to repay their loans and gives them a rating. These ratings help investors decide whether to lend money or invest in their debt.

Question 29

Crumble:

Answer 29

refers to a sudden and significant decline in the value of an asset, market, or financial system; often causes financial problems.

Question 30

Current assets

Answer 30

assets a company owns that can quickly be turned into cash, usually within a year. This includes cash, money owed by customers, inventory for sale, and other short-term investments. They help the company manage its day-to-day expenses and operations.