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26 Cards in this Set
- Front
- Back
Assets
Page 2 |
Anything of value owned by a person or a firm.
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Bond
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A financial security issued by a corporation or a government that represents a promise to repay a fixed amount of money.
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Bubble
Page 14 |
An unsustainable increase in the price of a class of assets.
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Commercial Bank
Page 4 |
A financial firm that serves as a financial intermediary by taking in deposits and using them to make loans.
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Diversification
Page 12 |
Splitting wealth among many different assets to reduce risk.
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Dividends
Page 3 |
A payment that a corporation makes to its shareholders.
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Federal Fund Rate
Page 11 |
The interest rate that banks charge each other on short-term loans.
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Federal Reserve
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The central bank of the united state; usually referred to as "the Fed".
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Financial Assets
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An asset that represents a claim on someone else for a payment.
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Financial Intermediary
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A financial firm, such as a bank, that borrows funds from savers and lends them to borrowers.
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Financial liability
Page 4 |
A financial claim owned by a person or a firm.
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FInancial Market
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A place or channel for buying or selling stock, bonds, and other securities.
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Foreign Exchange
Page 3 |
Units of foreign currency.
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Information
Page 3 |
Facts about borrowers and about expectations of returns on financial assets.
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Interest Rate
Page 3 |
The cost of borrowing funds (or the payment for lending funds), usually expressed as a percentage of the amount borrowed.
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Liquidity
Page 12 |
The case with which an asset can be exchanged for money.
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Monetary Policy
Page 11 |
The actions the federal reserve takes to manage the money supply and interest rates to pursue macroeconomic policy objectives.
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Money
Page 2 |
Anything that is generally accepted in payment for goods and services or to pay off debts.
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Money supply
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The total quantity of money in the economy.
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Portfolio
Page 8 |
A collection of assets, such as stocks and bonds.
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Primary Market
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A financial market in which stocks, bonds, and other securities are sold for the first time.
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Risk Sharing
Page 12 |
A service the financial system provides that allows savers to spread and transfer risk.
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Secondary Market
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A financial market in which investors buy and sell existing securities.
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Securitization
Page 3 |
The process of converting loans and other financial assets that are not tradable into securities.
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Security
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A financial asset that can be bought and sold in a financial market.
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Stock
Page 3 |
Financial securities that represents partial ownership of a firm; also called equities.
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