Econ chapters 10-11 vocab

studied byStudied by 4 people
4.0(1)
get a hint
hint

money

1 / 58

Tags and Description

help

59 Terms

1

money

anything that serves as a medium of exchange, a unit of account, and a store of value

New cards
2

fiat money

objects that have value because a government has decreed that they are an acceptable means to pay debts

New cards
3

store of value

Something that keeps its value if stored rather than spent

New cards
4

currency

coins and paper bills used as money

New cards
5

commodity money

objects that have value in and of themselves and that are also used as money

New cards
6

representative money

objects that have value because the holder can exchange them for something else of value

New cards
7

specie

coined money, usually gold or silver, used to back paper money

New cards
8

barter

the direct exchange of one set of g/s for another

New cards
9

unit of account

a means for comparing the values of g/s

New cards
10

medium of exchange

anything that is used to determine value during the exchange of g/s

New cards
11

investment

the act of redirecting resources from being consumed today so that they may create benefits in the future

New cards
12

financial system

the network of structures and mechanisms that allows the transfer of money between savers and borrowers

New cards
13

financial asset

a claim on the property or income of a borrower

New cards
14

financial intermediary

an institution that helps channel funds from savers to borrowers

New cards
15

mutual fund

an organization that pools the saving of many individuals and invests this money in a variety of stocks, bonds, and other financial assets.

New cards
16

hedge fund

a private investment organization that employs risky strategies to try and make huge profits for investors

New cards
17

diversification

the stratey of spreading out investments to reduce risk

New cards
18

portfolio

a collection of financial assets

New cards
19

prospectus

an investment report that provides info to potential investors

New cards
20

return

the money an investor receives above and beyond the sum of money initially invested

New cards
21

coupon rate

the interest rate that a bond issuer will pay to the bondholder

New cards
22

maturity

the time at which payment to a bondholder is due

New cards
23

par value

a bond’s stated value, to be paid to the bondholder at maturity

New cards
24

yield

the annual rate of return on a bond if the bond is held to maturity

New cards
25

savings bond

a low-denomination bond issued by the US govt

New cards
26

inflation-indexed bond

a bond that protects the investor against inflation by its linage to an index of inflation

New cards
27

municipal bond

a bond issued by a state or local government or a municipality to finance a public project

New cards
28

corporate bond

a bond issued by a corporation to help raise money for an expansion

New cards
29

junk bond

a bond with high risk and potentially high yield

New cards
30

capital market

a market in which money is lent for periods longer than a year

New cards
31

money market

a market where money is let for periods of a year or less

New cards
32

primary market

a market for selling financial assets that can be redeemed only by the original holder

New cards
33

secondary market

a market for reselling financial assets

New cards
34

share

a portion of stock

New cards
35

capital gain

the difference between the selling price and the purchase price that results in a financial gain for the seller

New cards
36

capital loss

the difference between the selling and purchase price that results in a financial loss for the seller

New cards
37

stock split

the division of each single share of a company’s stock into more than one share

New cards
38

stockbroker

a person who links buyers and sellers of stock

New cards
39

brokerage firm

a business that specializes in trading stocks

New cards
40

stock exchange

a market for buying and selling stock

New cards
41

futures

contracts to buy or sell commodities at a particular date in the future at a price specified today

New cards
42

options

contracts that give investors the right to buy or sell stock and other financial assets at a particular price until a specified future date

New cards
43

call option

a contract for buying stock at a particular price until a specified future date

New cards
44

put option

a contract for selling stock at a particular price until a specified future date

New cards
45

bull market

a steady rise in the stock market over a period of time

New cards
46

bear market

a steady drop or stagnation in the stock market over a period of time

New cards
47

speculation

the practice of making high-risk investments with borrowed money in the hopes of getting a big return

New cards
48

money supply

all the money available in the US economy

New cards
49

liquidity

the ability to be used as, or directly converted into, cash

New cards
50

demand deposit

money in a checking account that can be paid out “on demand” or at any time

New cards
51

money market mutual fund

a fund that pools money from small savers to purchase short-term gov’t and corporate securities

New cards
52

fractional reserve banking

a banking system that keeps only a fraction of its funds on hand and lends out the remainder

New cards
53

default

failing to pay back a loan

New cards
54

mortgage

a specific type of loan that is used to buy real estate

New cards
55

credit card

a card entitling its owner to buy g/s based on the owners promise to pay for those g/s

New cards
56

interest

the price paid for the use of borrowed money

New cards
57

principal

the amount of money borrowed

New cards
58

debit card

a card used to withdraw money from a bank account

New cards
59

creditor

a person/institution to whom money is owed.

New cards

Explore top notes

note Note
studied byStudied by 28 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 3912 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 9 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 120 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 12 people
Updated ... ago
4.0 Stars(1)
note Note
studied byStudied by 94 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 2 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 10 people
Updated ... ago
5.0 Stars(1)

Explore top flashcards

flashcards Flashcard30 terms
studied byStudied by 20 people
Updated ... ago
5.0 Stars(2)
flashcards Flashcard68 terms
studied byStudied by 17 people
Updated ... ago
5.0 Stars(2)
flashcards Flashcard33 terms
studied byStudied by 6 people
Updated ... ago
5.0 Stars(2)
flashcards Flashcard20 terms
studied byStudied by 30 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard115 terms
studied byStudied by 9 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard69 terms
studied byStudied by 32 people
Updated ... ago
5.0 Stars(2)
flashcards Flashcard25 terms
studied byStudied by 18 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard64 terms
studied byStudied by 3535 people
Updated ... ago
4.9 Stars(48)