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Sources of capital
vocab
32
Economics
12th Grade
03/29/2012

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Term
Disposable income
Definition
money left after taxes are paid
Term
Balance
Definition
amount on the credit side of an account or the difference of debit/credit transactions
Term
Liquidity
Definition
convert assets to cash without losing any money
Term
Time deposits
Definition
deposits that earn interest and must stay deposited for so long
Term
Maturity
Definition
time money must be deposited in a time deposit
Term
Savings rate
Definition
percent of disposable income not used
Term
investment
Definition
purchase of a capital good with the expectation that profit will increase
Term
budget
Definition
plan listing expenses and income
Term
fixed expenses
Definition
expenses that dont vary
Term
flexible expenses
Definition
expenses that vary
Term
diversification
Definition
the spreading and saving of different investments
Term
real investment
Definition
investment that creates a capital good
Term
capital accumulation
Definition
expansion of the amount of a capital good
Term
infrastrucure
Definition
facilities/service an economy needs to function
Term
venture capital
Definition
funds invested in an enterprise to help aid economic growth
Term
capital gain
Definition
profit earned through sale
Term
capital loss
Definition
capital asset is sold for less than cost
Term
stock split
Definition
action to divide stock into lots of shares
Term
brokers
Definition
person who carried out orders to buy/sell stocks n bonds
Term
investment bank
Definition
buys large stock/bond/trade and resells for a profit
Term
bull market
Definition
price of stock/bond/trade is on rise n will continue to rise
Term
bear market
Definition
price of stock/bond/trade is on decline n will continue to fall
Term
yields
Definition
total income on a loan
Term
futures
Definition
bought to sell at an agreed price at an agreed time for a profit
Term
prospectus
Definition
a fact sheet with detailed financial info
Term
installments
Definition
equally divided amounts of principle and interest payments back on a loan
Term
credit rating
Definition
estimation of the probability of repayment
Term
credit bureau
Definition
credit reporting service collects info from consumers about consumers
Term
finance charge
Definition
total cost of credit
Term
annual percentage rate
Definition
yearly percentage of cost of credit
Term
usury
Definition
charging interest above the legal limit
Term
bankruptcy
Definition
legal declaration of the inability to repay debts
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