Economic Unit 3 Vocabulary test its for seniors in high school. lkdjfkasjk jdfka kdjf kjfkajfldf ajf ajf lajf Estefani published on April 01, 2014 Stacked 1/34 what is capital gain? the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller the difference between a lower selling price and a higher purchase price, resulting in a financial loss to the seller 2/34 what is investment? the ability to be used as or directly converted to cash the act of redirecting resources from being consumed today so that they may create benefits in the future institution that helps channel funds from savers to borrowers 3/34 what is portfolio? the ability to be used as or directly converted to cash a collection of financial assets the act of redirecting resources from being consumed today so that they may create benefits in the future 4/34 diversification spreading out investments to reduce risk the system that allows the transfer of money between savers and borrowers claim on the property or income of a borrower 5/34 what is financial intermediary? funds that pools the savings of many individuals and invests this money in a variety of stocks, bonds. other financial assets institution that helps channel funds from savers to borrowers a collection of financial assets 6/34 what is capital loss? the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller the difference between a lower selling price and a higher purchase price, resulting in a financial loss to the seller a bond that a corporation issues to raise money to expand its business 7/34 what is debit card? failure to pay back a loan a card used to withdraw money the amount of money borrowed 8/34 what is financial system? institution that helps channel funds from savers to borrowers spreading out investments to reduce risk the system that allows the transfer of money between savers and borrowers 9/34 what is FDIC? the government agency that insures customer deposits bank that belongs to the federal reserve system 10/34 what is financial asset? claim on the property or income of a borrower an investment report to potential investors the act of redirecting resources from being consumed today so that they may create benefits in the future 11/34 what is stock split? portion of stock the division of a single share of stock into more than one share a market for buying and selling of stock 12/34 what is municipal bond? claims of ownership in a corporation a market for buying and selling stock a bond issued by a state or local gov't to finance such improvements as highways, state buildings, libraries, parks and schools 13/34 interest the price paid for the use of borrowed money a card entitling its holders to buy goods and services based on the holders promise to pay for these goods/services fail to pay back a loan 14/34 what is stock broker? a lower rated, potentially higher- paying bond a person who links buyers and sellers of stock the difference between a lower selling price and a higher purchase price, resulting in a financial loss to the seller 15/34 what is great depression? the severe economic decline that began in 1929 and lasted for more than decade the national currency we use today in the USA 16/34 what is central bank? the gov't agency that insures customer deposits bank that can lead to other banks in times of need the nations central banking system 17/34 what is brokerage firm? a lower rated, potentially higher-paying bond a business that specializes in trading stocks the division of a single share of stock into more than one share 18/34 what is equities? a business that specializes in trading stocks a person who links buyer and sellers of stock claims of ownership in a corporation 19/34 what is stock exchange? the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller a market for buying and selling stock 20/34 what is corporate bond? a bond that a corporation issues to raise money to expand its business the division of a single share stock into more than one share the system that allows the transfer of money between savers and borrowers 21/34 what is Bank? an institution for receiving, keeping, and lending money : the nation’s central banking system 22/34 what is mutual fund? funds that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets a collect of financial assets 23/34 what is prospectus? the act of redirecting resources from being consumed today so that they may create benefits in the future an investment report to potential investors 24/34 what is Federal Reserve System? an institution for receiving, keep, and lending money all the money available in the US economy the nations central banking system 25/34 what is liquidity? failure to pay back a loan the ability to be used as or directly converted to cash a card entitling its holders to buy goods and services based on the holders promise to pay for these goods/services 26/34 what is federal reserve note? the national currency we use today in the USA the nation’s central banking system 27/34 what is return? spreading out investments to reduce risk the ability to be used as or directly converted to cash the money an investor receives above and beyond he sum of money initially invested 28/34 principal the amount of money borrowed the ability to be used as or directly converted to, cash 29/34 what is default? the price paid for the use of borrowed money failure to pay back a loan the ability to be used as or directly converted to cash 30/34 shares an investment report to potential investors portion of stock the system that allows the transfer of money between savers and borrowers 31/34 what is member bank? bank that belongs to the federal reserve system \: bank that can lend to other banks in times of need 32/34 what is junk bond? a lower rated, potentially higher-paying bond the system that allows the transfer of money between savers and borrowers a person who links buyers and sellers of stock 33/34 credit card a card entitling its holders to buy goods and services based on the holders promise to pay for these goods/services the amount of money borrowed the price paid for the use of borrowed money 34/34 what is mortgage? the amount of money borrowed a card used to withdraw money a specific type of loan that is used to buy real estate