Economic Unit 3 Vocabulary test

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published on April 01, 20145 responses 0

what is central bank?

the gov't agency that insures customer deposits
bank that can lead to other banks in times of need
the nations central banking system

diversification

spreading out investments to reduce risk
the system that allows the transfer of money between savers and borrowers
claim on the property or income of a borrower

what is default?

the price paid for the use of borrowed money
failure to pay back a loan
the ability to be used as or directly converted to cash

principal

the amount of money borrowed
the ability to be used as or directly converted to, cash

what is capital loss?

the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller
the difference between a lower selling price and a higher purchase price, resulting in a financial loss to the seller
a bond that a corporation issues to raise money to expand its business

what is prospectus?

the act of redirecting resources from being consumed today so that they may create benefits in the future
an investment report to potential investors

what is brokerage firm?

a lower rated, potentially higher-paying bond
a business that specializes in trading stocks
the division of a single share of stock into more than one share

what is debit card?

failure to pay back a loan
a card used to withdraw money
the amount of money borrowed

what is stock exchange?

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

what is federal reserve note?

the national currency we use today in the USA
the nation’s central banking system

what is investment?

the ability to be used as or directly converted to cash
the act of redirecting resources from being consumed today so that they may create benefits in the future
institution that helps channel funds from savers to borrowers

what is liquidity?

failure to pay back a loan
the ability to be used as or directly converted to cash
a card entitling its holders to buy goods and services based on the holders promise to pay for these goods/services

what is stock split?

portion of stock
the division of a single share of stock into more than one share
a market for buying and selling of stock

what is financial system?

institution that helps channel funds from savers to borrowers
spreading out investments to reduce risk
the system that allows the transfer of money between savers and borrowers

what is equities?

a business that specializes in trading stocks
a person who links buyer and sellers of stock
claims of ownership in a corporation

what is Federal Reserve System?

an institution for receiving, keep, and lending money
all the money available in the US economy
the nations central banking system

what is stock broker?

a lower rated, potentially higher- paying bond
a person who links buyers and sellers of stock
the difference between a lower selling price and a higher purchase price, resulting in a financial loss to the seller

interest

the price paid for the use of borrowed money
a card entitling its holders to buy goods and services based on the holders promise to pay for these goods/services
fail to pay back a loan

what is financial asset?

claim on the property or income of a borrower
an investment report to potential investors
the act of redirecting resources from being consumed today so that they may create benefits in the future

what is portfolio?

the ability to be used as or directly converted to cash
a collection of financial assets
the act of redirecting resources from being consumed today so that they may create benefits in the future

what is financial intermediary?

funds that pools the savings of many individuals and invests this money in a variety of stocks, bonds. other financial assets
institution that helps channel funds from savers to borrowers
a collection of financial assets

what is corporate bond?

a bond that a corporation issues to raise money to expand its business
the division of a single share stock into more than one share
the system that allows the transfer of money between savers and borrowers

shares

an investment report to potential investors
portion of stock
the system that allows the transfer of money between savers and borrowers

what is mortgage?

the amount of money borrowed
a card used to withdraw money
a specific type of loan that is used to buy real estate

what is great depression?

the severe economic decline that began in 1929 and lasted for more than decade
the national currency we use today in the USA

what is junk bond?

a lower rated, potentially higher-paying bond
the system that allows the transfer of money between savers and borrowers
a person who links buyers and sellers of stock

what is capital gain?

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

credit card

a card entitling its holders to buy goods and services based on the holders promise to pay for these goods/services
the amount of money borrowed
the price paid for the use of borrowed money

what is return?

spreading out investments to reduce risk
the ability to be used as or directly converted to cash
the money an investor receives above and beyond he sum of money initially invested

what is mutual fund?

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

what is Bank?

an institution for receiving, keeping, and lending money
: the nation’s central banking system

what is municipal bond?

claims of ownership in a corporation
a market for buying and selling stock
a bond issued by a state or local gov't to finance such improvements as highways, state buildings, libraries, parks and schools

what is FDIC?

the government agency that insures customer deposits
bank that belongs to the federal reserve system

what is member bank?

bank that belongs to the federal reserve system
\: bank that can lend to other banks in times of need