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32 Cards in this Set

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  • Back
Financial Environment
Financial system, institutions, markets, and individuals that make the economy operate efficiently.
Finance
Study of how individuals, institutions, governments, and businesses acquire, spend, and manage financial resources.
Financial Institutions
Intermediaries that help the financial system operate efficiently and transfer funds from savers and investors to individuals, businesses, and governments that seek to spend or invest the funds.
Financial Markets
Locations or electronic forums that facilitate the flow of funds amongst investors, businesses, and governments.
Investments
Involves sale or marketing of securities, the analysis of securities, and the management of investment risk through portfolio diversification.
Financial Management
Involves financial planning, asset management, and fund raising decisions to enhance the value of businesses.
Entrepreneurial Finance
Study of how growth-driven, performance-focused, early stage firms raise financial capital and manage operations and assets.
Personal Finance
Study of how individuals prepare for financial emergencies, protect against premature death and property losses, and accumulate wealth.
Financial System
Interaction of policy makers, a monetary system, financial institutions, and financial markets to expedite the flow of financial capital from savings into investment.
Financial Intermediation
Process by which savings are accumulated in depository institutions and then lent or invested.
Depository Institutions
Accept deposits from individuals and then lend pooled deposits to businesses, governments, and individuals.
Contractual Savings Organizations
Collect premiums and contributions from participants and provide insurance against major financial losses and retirement benefits.
Securities Firms
Accept and invest individual savings and also facilitate the sale or transfer of securities between investors.
Finance Firms
Provide loans directly to consumers and businesses and help borrowers obtain mortgage loans on real property.
Securities Markets
Physical locations or electronic forums where debt and equity securities are sold and traded.
Primary Securities Markets
Where the initial offering of debt and equity securities to the public occurs.
Secondary Securities Markets
Where the transfer of existing debt and equity securities between investors occurs.
Mortgage Markets
Where mortgage loans, backed by real property in the form of buildings and houses, are originated and sometimes trade.
Derivatives Markets
Facilitate purchase and sale of derivatives securities, which are financial contracts that derive their values from underlying securities.
Currency Exchange
Electronic markets in which banks and institutional traders buy and sell various currencies on behalf of businesses and other clients.
Real Assets
Includes the direct ownership of land, buildings or homes, equipment, inventories, durable goods and precious metals.
Financial Assets or Claims
Debt instruments, equity, securities, and other financial contracts that are backed by real estate.
Money Markets
Where debt instruments of one year or less are traded.
Capital Markets
Markets for debt securities with maturities longer than one year and corporate stocks.
Treasury Bill
Short-term debt obligation issued by the U.S. federal government.
Negotiable Certificate of Deposit (CD)
Short-term debt instrument issued by depository institutions that can be traded in the secondary money markets.
Commercial Paper
A short-term unsecured promissory note issued by a high credit-quality corporation.
Treasury Bond
Long-term debt security issued by the U.S. federal government.
Municipal Bond
Long-term debt security issued by a state or local government.
Eurobond
Bond denominated in U.S. dollars that is sold to investors located outside the United States.
Foreign Bond
Bond issued by a corporate or government that is denominated in the currency of a foreign country where it is sold.
Euro
Common currency that has replaced the individual currencies of 12 member countries of the European Union.