• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/85

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

85 Cards in this Set

  • Front
  • Back
barter economy
moneyless economy that relies on trade
money
substance tht serves as medium of exchange, a measure of value, and a store of value
medium of exchange
common denominator tht can b used to express worth in terms tht most individuals understand
store of value
property tht allows purchasin power can b stored until needed
commodity money
money tht has an alt. use as an economic good or commodity
fiat money
money by gov. decree
specie
money in form of coins made frm silver or gold
monetary unit
standard unit of currency
monetary standard
mechanism designed to keep money supply portable, durable, divisivble and limited in supply
state bank
receives its charter to operate from a state gov.
legal tender
fiat currency tht must b accepted in payment for debts
US notes
fed. fiat currency issued in 1862 tht had no gold or silver backing
national bank
privately owned bank chartered by fed. gov.
national bank note/ national currency
ppr currency of uniform appearance tht was backed by US gov. bonds
gold certificate
ppr currency backed by gold placed on deposit with US treasury
silver certificate
ppy currency backed by silver dollards and bullion places on reserve w/ treasury
treasury coin notes
ppr currency issued by treasury tht was redeemable in both gold and silver
gold standard
monetary stndrd undr whch basic currency unit is equivilant to, & can b xchngd for a specific amnt of gld
inconvertable fiat money standard
monetary stndrd undr whch fiat money supply cnt b converted n2 gld or silver by its citizens
fed. reserve system
US's first true central bank
central bank
bank tht lends to othr banks in times of need
fed. reserve notes
ppy currency issued by fed. tht eventually replaces all othr types of currency
run on the bank
rush by depositorsto w/draw their funds from a bank before it failed
bank holiday
brief period of during which every bank in country was required to close
commerical bank
banks tht catered to interests of business and commerce
demand deposit accounts (DDAs)
accounts whose funds cld b removed by simply writing a check w/out prior approval frm depository institution
thrift institutions
financial instituions tht accepted deposits of small investors but didn't have DDas until mid 1970s
mutual savings bank (MSB)
a depostior owned financial org. operated only for benefit of its depositors
savings bank
thrift insititutions growing out of mutual savings banks
NOW account
type of checking account tht pays interest
savings and loan association (S&L)
depository institution tht invests majority of its funds in home mortgages
credit union
nonprofit service cooperative tht is owned by and operated for benefit of its members
share draft accounts
interest earning checking account issued by credit unions
deregulation
removal or relaxation of gov. restrictions on business
creditor
person or institution to whom money is owed
saving
not spending; equals disposable income(after tax) minus spnding on consumption
savings
dollars tht become available in the absence of consumption
financial system
network of savers, investors, and financial instituions tht wrk together to transfer savings to investors
certificate of deposit
receipt showing that an investor has made an interest-bearing loan to a bank
financial assets
claims on property and income of a borrower
financial intermediaries
financial institutions tht bring the funds tht savers provide and lend them to others
finance company
firm tht makes loans directly to consumers and specializes in buying installment contracts from merchants who sell goods on credit
bill consolidation loan
loan used by consumers to pay pay off other bills
premium
price insured person pays reguarly for an insurance policy
mutual fund
a company tht sells tock in itself to individual investors and then invests money it recieves in stocks and bonds issued by other corporations
net asset value (NAV)
net value of mutual fund divided by number of shares issued by the mutual fund
pension
a regular payment intended to provide income security to someone who has worked a certain # of yrs, reached a certain age, or suffered a certain kind of injury
pension fund
fund set up to collect income and disburse payments to those persons eligible for retirement, old-age, or disability benefits
real estate investment trust (REIT)
company organized primarily to make loans to compaines tht build homes
risk
a situation in which the outcome is not certain, but probablities of different outcomes can be estimated
401(K) plan
taz-deferred investment and savings plan tht acts a s personal pension fund for employees
coupon
stated interest on debt
maturity
life of a bond
par value
principal or total amount initially borrowed tht must be repaid to lender at maturity
currenct yield
annual interest on a bond diveded by its purchase price
municipal bonds
bonds issued by state and local governments
tax-exempt
fed. gov. dsnt tax interest paid to investors
savings bonds
low-denomination, nontransferable bonds issued by US gov.
treasury notes
US gov. obligations w/ maturities of 1-10 years
treasury bonds
US gov. bonds tht have maturities ranging frm more than 10 to as many as 30 yrs.
treasury bill
short term US gov. obligation w/ a maturity of 13, 26, or 52 weeks and a minimym denomination of $10,000
individual retirement accounts (IRAs)
long-term tax-sheltered time deposits tht an employee can set up as part of a retirement plan
roth IRA
an IRA whose contributions are made aftr taxes so tht no taxes r takin out at maturity
capital market
market where money is loaned for more than 1 yr.
money market
market where money is loaned for periods of less than 1 yr.
primary market
market where only origional issuer can repurchase or redeem a financial asset
secondary market
market in which existing financial assets can be resold to new owners
equities
stocks that represent ownership shares in a corporation
efficient market Hypothesis (EMH)
argument tht stocks r always priced abt rght & tht bargains r hrd 2find b/c they're followed closely by so many investors
portfolio diversification
practice of holding a large # of stocks so thtincreases in some can offset unexpected declines in others
stockbroker
person who buys or sells equities
securities exchanges
places where buyers and seller meet to trade securities
seats
memberships in NY stock Exchange tht allow access to trading floor
over the counter market
electronic market place for securities not traded on an organized exchange
Dow-Jones industrial average
most popular and widely publicizied measure of stock market performance on NY Stock Exchange
standard & Poor's 500
popular measure of stock market performance based on price changes of 500 representative stocks
bull market
"strong" market w/ prices of equities moving up for several months or yrs. in a row
bear market
"mean" market w/ prices of equities moving sharply dwn for several months or yrs. in a row
spot market
market in which transactions r made immediately at prevailing price
futures contract
agreement to buy or sell at a specific date in future at a predetermined price
futures markets
marketplaces in which future contracts, or futures, are bought and sold
options
contracts tht provide right to purchase or sell commodities and/or financial addests @ some point in future at a price agreed upon 2day
call option
right to buy a share of stock at a specified price some time in the future
put option
right to sell a share of stock at a specified price in the future
options market
market in which options are traded