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21 Cards in this Set
- Front
- Back
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What is Finance? |
All the activity that involve locating, collecting, packaging, and redistributing capital.
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Finance is divided into |
People who have capital and people who dont |
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What is consumption? |
Using up your money by making a final purchase. |
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What is investment? |
A decision not to spend one's capital for immediate consumption, but to put it to work so that it might produce more capital in the future. |
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What is an investor? |
An individual or organisation that provides the capital to finance and enterprise in the expectation that the enterprise will return more capital in the future. |
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What is Financial intermediary? |
A business which acts as a go-in between, finding, collecting, packaging, and redistributing money from those with spare capital who want to put it to use, to those with ideas and ambitions who need capital. |
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What is loan capital or debt capital? |
Money that is lent to a business or an individual. A loan must be repaid usually with interest. |
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What is equity capital? |
Money that is given to a business in exchange for a share of the ownership and a share of any profits. |
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Banks are the? And what service do they give? |
Best known financial intermediary Depositiation |
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What is deposit using institution? |
Any business, like a bank, that accepts deposit of money from its customer. |
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What is deposit? |
To hand over for safe keeping |
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What is interest? |
The fee paid to the lender of money for the right to use that money until is repaid. |
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What is Return on investment? |
The benefit or gain which comes to savers or investors from putting their space capital into a particular investment. |
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What is net interest? |
The difference between that a bank collects from borrowers, and the interest that it pays to depositors. |
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What is investment dealers? |
Financial intermediaries that help businesses raise capital by acting as both advisors and agent in the process of becoming a public corporation, and selling shares to the public. |
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What is a Agent? |
An individual or an organisation that is hired to advise and represent someone else. |
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What is a stockbroker? |
An individual who manages financial investment for clients by researching the financial markets, monitoring clients investments and providing advice about which shares to buy or sell. |
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What is a investment bank? |
The name given to the division of a bank that is involved in investment dealing. |
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What is Pension? |
Money that a person receives after they retire from work, or after the reach retirement age. |
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What is public pension? |
A pension fund operated by a government, where contributions are mandated by law and only available to all citizens who have contributed. |
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What is private pension? |
A pension scheme offered by an employer, as part of an employee's package of pay and benefit. |
