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Chapter 12 voc
Financial Markets
56
Economics
12th Grade
03/31/2011

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Term
saving (section 1)
Definition
the absence of spending.
Term
savings (section 1)
Definition
refers to the dollars that become available when people abstain form consumption.
Term
Financial system (section 1)
Definition
A network of savers and investors and financial institutions that work together to transfer savings to investors
Term
cerifiate of deposit (section 1)
Definition
A receipt showing that an investor has made and investment bearing loan to a bank or a government or corporate bond.
Term
financial asset (section 1)
Definition
Claims on the property and the income of the borrower
Term
financial intermediary (section 1)
Definition
Financial institutions that led the funds that savers provide to borrowers.
Term
nonbank financal institutions (section 1)
Definition
Non-depository institutions that channel savings to borrowers
Term
finance company (section 1)
Definition
Is a firm that specializes in making loans directly to consumers and in buying and installing contracts from merchants who sell goods on credit.
Term
bill consolidation loans (section 1)
Definition
A loan consumers use to pay off other bills.
Term
permium (section 1)
Definition
is the price the insured pays for this policy and it is usually paid monthly,Quarterly ,or an annually for the length of protection.
Term
mutual fund (section 1)
Definition
Is a company that sells stock in itself to individual investors and then invests that of the money it receives in stocks and bonds issued by other corporations.
Term
net asset value (NAV) (section 1)
Definition
the net value of the mutual fund divided by the number of shares issued by the mutual fund.
Term
pension (section 1)
Definition
Is a regular payment intent to provide income security to someone who has worked a certain number of years, reach a certain age, are suffered a certain kind of injury.
Term
pension fund (section 1)
Definition
Is a fund set up to collect income and disperse payments to those persons eligible for retirement, old age or disability benefits.
Term
real estate investment trust(REIT)
(section 1)
Definition
A company organized primarily to make loans to construct companies that build homes.
Term
risk (section 2)
Definition
Is a situation in which the outcome is not certain, but probabilities for each possible outcome can be estimated.
Term
401k plan (section 2)
Definition
A tax deferred investment and savings plan that acts as a personal pension fund for employees.
Term
coupon (section 2)
Definition
the stated interest on the debt.
Term
maturity (section 2)
Definition
The life of the bond
Term
par value (section 2)
Definition
The principle are total amount initially borrowed that must be repaid to the lender at maturity
Term
current yield (section 2)
Definition
The annual interest divided by the purchase price.
Term
Municipal bonds (section 2)
Definition
Bonds issued by state and local government.
Term
tax-exempt (section 2)
Definition
Meaning that the federal government does not tax the interest paid to investors.
Term
saving bonds (section 2)
Definition
Low denominations, nontransferable bonds issued by the United States government usually through payroll savings plan.
Term
treasury notes (section 2)
Definition
are United States government obligation with maturities of two to 10 years.
Term
Treasury bonds (section 2)
Definition
Have maturities ranging from more than 10 years as many as 30 years.
Term
Treasury bills (section 2)
Definition
Also known as T-bills, is a short term obligation with maturities of 13,26 or 52 weeks and a minimum denomination of one thousand.
Term
Individual Retirement Account(IRA)
(section 2)
Definition
Long-term ,tax-sheltered time deposits that an employee can set up as a part of a retirement plan.
Term
Roth IRA (section 2)
Definition
TRA whose contributions are made after taxes so that no taxes are taken out of maturity.
Term
Primary Market (section 2)
Definition
A market where only the original issue can repurchase or redeem a financial assists.
Term
secondary Market (section 2)
Definition
Is a market in which existing financial assists can be resold to new owners.
Term
equities (section 3)
Definition
Are stocks that represent ownership shares in corporation.
Term
Efficient Market Hypothesis (EMH)
(section 3)
Definition
The argument that stocks are always priced about right and that bargains are hard to find because they are followed closely by so many investors-is often used to help explain the prices of equities.
Term
portfolio diversification (section 3)
Definition
The practice of holding a large number of preferred stock so that increasing in some can offset unexplained declines in other.
Term
stockbroker (section 3)
Definition
A person who buys or sells equities for clients.
Term
securities exchange (section 3)
Definition
a place where buyers and sellers meet to trade securities.
Term
seats (section 3)
Definition
Membership that allow access to the trading folder.
Term
over-the-counter market (section 3)
Definition
An electronic marketplace for securities that are not traded on an organized exchange.
Term
Dow-Jones Industrial Average (DJIA)
(section 3)
Definition
Is the most popular and widely publicized manager of the stock market performance on the NYSE.
Term
Standard&poor's 500(S&p500)
(section 3)
Definition
Uses the price changes of 500 representatives stocks as an indicator of overall market performance.
Term
bull market
(section 3)
Definition
Is a strong market with the price is moving for several months are years in a row.
Term
bear Market
(section 3)
Definition
Is a "mean" market with the prices of equities moving sharply down for several months or year in a row.
Term
spot market
(section 3)
Definition
Is Market in which a transaction is made immediately at the prevailing price.
Term
futures contract
(section 3)
Definition
An agreement to buy or sell at a specific date in the future at a predetermined price.
Term
futures market
(section 3)
Definition
Are in the market place is in which future contracts, or "futures", are bought and sold.
Term
options
(section 3)
Definition
Are contracts that provide the right to purchase or sell commodities or financial assist at some point in the future at a price agreed upon today.
Term
call option
(section 3)
Definition
The right to buy a shared of stock at a specific price sometime in the future.
Term
put option
(section 3)
Definition
The right to sell a stock at a specific time in the future.
Term
put option
(section 3)
Definition
The right to buy a share of stock at a specific price sometime in the future
Term
Option markets
(section 3)
Definition
The right to sell share of stock at a specific price in the future.
Term
Federal Reserve System ( ch11 section 3)
Definition
or the Fed, as the nation's first true central bank.
Term
Central bank ( ch11 section 3)
Definition
is a bank that can lend to other banks in time of need.
Term
Federal reserve note ( ch 11 section 3)
Definition
paper currency issued by the Fed that eventually replaced all other types of federal currency-were added to the money supply.
Term
run on the bank ( ch11 section 3)
Definition
a rush by depositors to withdraw their funds from a bank before fail.
Term
bank holiday ( ch 11 section 3)
Definition
a brief period during which every bank in the country was required to close.
Term
commercial banks ( ch 11 section 3)
Definition
banks that catered to
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