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ECON QUIZ
ECON QUIZ insurance and investments
23
Economics
Undergraduate 3
04/06/2015

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Cards

Term
capital gain
Definition
the difference between the original cost plus expenxex for buying and selling
Term
investment
Definition
the purchase of property or claims to property that will yield income, capital gain, or both
Term
credit status
Definition
an investment represented by loans
Term
proprietor status
Definition
an investment represented by ownership
Term
diversification
Definition
the spreading of money among a variety of investments to achieve security of principle and stability of income.
Term
marketability
Definition
the ability to readily exchange an asset for money at whatever price may be attainable
Term
speculation
Definition
the investment in property or claims to property whereby the speculator seeks to increase the return by accepting additional risks
Term
yield
Definition
the portion of return produced from dividends, interest payments, rental income, and so on
Term
leverage
Definition
a strategy of investing that involves borrowing to possess a large amount of property
Term
bond
Definition
a written promise to pay a certain sum of money on or before a specified date, with interest at an agreed rate
Term
debenture
Definition
a bond that is unsecured; the only assurance of repayment is the company's earning power
Term
mortgage bond
Definition
a bond secured by a property
Term
equipment trust certificate
Definition
a provision that secures a bond with assets of substantial and immediate resale value
Term
sinking-fund bonds
Definition
a type of bond that provides for earnings to be set aside periodically and applied toward retirement of the bond
Term
serial bonds
Definition
a type of bond that is retired in installments at times indicated on the bond
Term
callable bonds
Definition
a type of bond that the invester must retire prior to maturity
Term
income bonds
Definition
a type of bond that has no stated interest rate, and interest is paid only if the company is profitable
Term
convertible bonds
Definition
a type of bond that may be exchanged for other bonds, stocks or securities
Term
zero coupon bonds
Definition
a type of bond that pays no interest and is discontinued heavily at the time of sale
Term
series EE bond
Definition
US government bonds that are issued at a discount and have a variable rate with a guarenteed minimum rate
Term
Series 1 bond
Definition
US government bonds that are sold in specific amounts at face value
Term
treasury bond
Definition
long term US government debts sold in denominations of 100 or more, which pay interest every six months and typically mature in 30 years
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