Week 11

Question 1

This investment is a type of investing activity that is outside the scope of shifts in national income or output and has more to do with changes in governmental policies or the desire to invest in emerging technologies. Investments of this type often do not have anything to do with the desire to make a profit, although the investor typically does seek to benefit from the strategy in some manner

Answer 1

Autonomous Investment

Question 2

is an asset purchased with the expectation that
it will generate income or appreciate over time. In finance,
common investments include stocks, bonds, real estate, mutual
funds and, to a lesser extent, commodities, annuities and options.

Answer 2

Invesment

Question 3

Making an investment is a way to decrease the amount of
money an investor has by placing the money in a financial
security. TRUE OR FALSE

Answer 3

FALSE (INCREASE)

Question 4

Investment that is positively related to the income level. That is, at high levels of income entrepreneurs are induced to invest more and vice-versa. At a high level of income, Consumption expenditure increases this leads to an increase in investment of capital goods, in order to produce more consumer goods.

Answer 4

Induced Investment

Question 5

refers to putting aside a fixed amount of money and expecting some kind of gain out of it within a stipulated time frame. This Investment ensures all your dreams turn real and you enjoy life to the fullest without actually worrying about the future.

Answer 5

Financial Investment

Question 6

comprises the steps taken from application to closing by the lender. It includes gathering the required documentation and filling out the proper forms for the mortgage paperwork.

Answer 6

Loan processing

Question 7

A majority of the loan processing is done by a processor. This person makes sure that all required documentation is included and signed in the loan package, and ensures that all required processes, such as the appraisal and title searches, are done correctly

Answer 7

Function

Question 8

The loan processor ensures that all of his work is in compliance with all federal mortgage mandates.

Answer 8

Benefits

Question 9

Most mortgage lenders operate as their own processors, unless they have a hired person for the position. The final step in the process, underwriting, is usually undertaken by another person to ensure that all regulations are followed.

Answer 9

Types

Question 10

Many processors have checklists of required documentation by loan type and size. They simply check off the required items as they are received.

Answer 10

Considerations

Question 11

A separate loan processor from the loan originator gives the lender a second set of eyes, ensuring that all necessary regulations and rules are met.

Answer 11

Safety Net

Question 12

can also be called as Intended Investment because an investor while making investment makes a concrete plan of his investment. Investment expenditures that the business sector intends to undertake based on expected economic conditions, interest rates, sales, and profitability.

Answer 12

Planned invesment

Question 13

type of investment, investors make investment randomly without making any concrete plans. Hence it can also be called as Unintended Investment. Under this type of investment, the investor may not consider the specific objectives while making an investment decision.

Answer 13

Unplanned Invesment

Question 14

used to express the total investment for nearly every business asset. The most common assets are tangible, such as land, equipment, property, and inventory.

Answer 14

Gross Investment

Question 15

legal documents that embody monetary value.

Answer 15

Financial Instrument

Question 16

This investment reflects the amount of money a company is spending to finance its operations. This is determined by subtracting depreciation from capital expenditure.

Answer 16

Net Investment