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Ch. 10 & 11 Terms
Ch. 10 and 11 vocabulary terms
28
Economics
12th Grade
03/25/2014

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Term
Money
Definition
anything that serves as a medium of exchange
Term
Medium Exchange
Definition
anything that is used to determine value during the exhange of goods and services
Term
unit of account
Definition
a means for comparing the value of goods
Term
store of value
Definition
something that keeps its value if its stored rather than used
Term
currency
Definition
coins and paper bills used as money
Term
bank
Definition
institution for recieving, keeping, and lending money
Term
federal reserve system
Definition
nations central banking system
Term
central bank
Definition
bank that can lend to other banks in times of need
Term
member bank
Definition
bank that belongs to the federal reserve system
Term
federal deposit insurance corporation
Definition
gov't agency that insures customer deposits if a bank fails
Term
money supply
Definition
all the money available in U.S. economy
Term
default
Definition
failure to pay back a loan
Term
interest
Definition
price paid for use of borrowed money
Term
principal
Definition
amount of money borrowed
Term
creditor
Definition
person or institution to whome money is owed
Term
financial system
Definition
system that allows the transfer of money between savers and borrowers
Term
mutual fund
Definition
fund that pools the saving of many indivuduals and invest this money in variety of stocks, bonds, and other financial assets.
Term
diversification
Definition
spreading out investments to reduce risk
Term
portfolio
Definition
collection of financial assets
Term
return
Definition
money an investor recieves above and beyond the sum of money initially invested
Term
savings bond
Definition
low denomination issued by U.S. gov't
Term
municpal bond
Definition
bond issued by a state or local gov't
Term
corporate bond
Definition
bond that a corporation issues to raise money in order to expand its business
Term
securites and exchange commission
Definition
independent agency of gov't that regulates financial markets and investment companies
Term
share
Definition
portion of stock
Term
stockbroker
Definition
perosn who links buyers and sellers of stock
Term
bull market
Definition
steady rise in stock market over a period of time
Term
bear market
Definition
steady drop in the stock over a period of time
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