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