Term
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Definition
| institution that helps channel funds from savers to borrowers |
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Term
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Definition
| spreading out investments to reduce risk |
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Term
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Definition
| amount that an investor pays to buy a bond |
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Term
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Definition
| contract that gives an investor the right to buy or sell stock |
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Term
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Definition
| an investment report for potential investors |
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Term
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Definition
| a device for pooling the savings of many investors and investing it in a variety of ways |
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Term
| why would investors buy a junk bond? |
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Definition
| they pay a potentially higher level of interest than other bonds |
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Term
| what is the difference between a primary market and a secondary market? |
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Definition
| primary: financial assets that can be redeemed only by the original investor; secondary: assets can be resold. |
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Term
| what are the Dow and the S&P 500? |
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Definition
| indexes that show the performances of limited but representative stocks. |
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Term
| what was one outcome of the stock market's Great Crash on 1929 that lasted for more than 50 years? |
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Definition
| ordinary people were afraid to invest in the stock market. |
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Term
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Definition
| failure to pay back a loan |
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Term
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Definition
| a government institution that covers bank accounts against bank failure |
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Term
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Definition
| something that keeps its worth |
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Term
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Definition
| the coins and paper bills used as money in society |
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Term
| the difference between representative money and fiat money is that... |
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Definition
| representative money can be turned into silver and gold... fiat cannot |
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Term
| what is the gold standard? |
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Definition
| a system in which a country's money is backed with gold |
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Term
| during the free banking era, between 1837 and 1863, banking in the united states was dominated by which of the following? |
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Definition
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Term
| what is the difference between simple and compound interest? |
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Definition
| simple interest is paid on the principal only; compound interest espied on both principal and interest. |
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Term
| the money supply of a country is made up of which of the following? |
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Definition
| all the money available in the economy |
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Term
| why are funds in checking accounts called demand deposits? |
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Definition
| they are available whenever the depositor writes a check for them |
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Term
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Definition
| the act of redirecting resources forming consumed today so that they may create benefits in the future. |
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Term
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Definition
| documents representing claims on the property or income of the borrower; securities |
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Term
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Definition
| a private investment organization that employs risky strategies that often made huge profits for investors. |
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Term
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Definition
| the act of redirecting resources from being consumed today so that they may create benefits in the future. |
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Term
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Definition
| the interest rate that a bond issuer will pay to the bondholder. |
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Term
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Definition
| low- denomination bonds issued by the united states government. |
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Term
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Definition
| market in which money is lent for periods longer than a year. |
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Term
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Definition
| money is lent for a year or less |
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Term
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Definition
| the difference between the higher selling price and the lower purchase price. |
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Term
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Definition
| the sale of a stock at a price lower than the purchase price |
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Term
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Definition
| stock is issued by shares |
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Term
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Definition
| the practice of making high risk investments w/ borrowing money in hopes of getting a big return |
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