Financial Systems and Policies

These flashcards cover key concepts and terms related to financial systems, policies, and economic principles.

Social security

A system of monetary relations providing financial support for individuals who do not participate in public work.

Quality of life

The subject of social life reflecting comfort and convenience of living conditions.

Insurance

A special type of economic activity associated with risk redistribution among participants.

Financial planning

The process of reviewing personal financial situations and developing plans to achieve goals.

Standard of living

Provision of material and spiritual goods necessary for life activities and satisfaction of needs.

Minimum consumer basket

A minimum set of goods and services quantified in natural and value terms.

Pension system

A manifestation of the state’s social policy providing monthly monetary payments to individuals.

Food basket

Calculated by statistics based on physiological norms of food consumption.

Cost of sales

The category under which production labor costs are included in profit and loss accounts.

Policyholder

A consumer who purchases an insurance policy.

Life insurance

A contract specifying a sum to be paid to a beneficiary upon the insured's death.

Deductible

The amount paid out-of-pocket by a policyholder before insurance coverage begins.

Liability Insurance

Covers insured for injuries or damages caused to other people or their property.

Homeowner’s Insurance

Combines property and liability insurance to protect against damage costs.

Net loss

Excess of debit in the profit and loss account.

OTC

Over-the-Counter, referring to a location where securities trading occurs directly between two parties.

Capital market

Market for financial assets with an original maturity of more than one year.

Public Finance

The system by which the state collects and spends funds.

Shares

Certificates of ownership issued by a joint-stock company.

Taxes

Compulsory payments established by the state levied within certain amounts.

Income statement

Financial statements prepared to indicate the profit and loss of a business.

Living wage

A certain amount of money high enough to maintain a normal standard of living.

Public debt

The amount owed by the government to creditors outside of itself.

Money

Any medium universally accepted as payment for goods and services.

Over-the-counter (OTC)

A market where trading is done directly between two parties without a centralized exchange.

Deductible

The amount of loss a policyholder must pay out of pocket before insurance kicks in.

Revenue expenditure

Expenditures required to meet operational costs and are recorded in the profit and loss account.

Standard of deferred payment

The function of money reflecting its role in facilitating future payment obligations.

Public Revenue

The income generated by the state through various channels, including taxation.

What is social security?

A system of monetary relations providing financial support for individuals who do not participate in public work.

What is quality of life?

The subject of social life reflecting comfort and convenience of living conditions.

What is insurance?

A special type of economic activity associated with risk redistribution among participants.

What is financial planning?

The process of reviewing personal financial situations and developing plans to achieve goals.

What is standard of living?

Provision of material and spiritual goods necessary for life activities and satisfaction of needs.

What is a minimum consumer basket?

A minimum set of goods and services quantified in natural and value terms.

What is a pension system?

A manifestation of the state’s social policy providing monthly monetary payments to individuals.

What is a food basket?

Calculated by statistics based on physiological norms of food consumption.

What is cost of sales?

The category under which production labor costs are included in profit and loss accounts.

Who is a policyholder?

A consumer who purchases an insurance policy.

What is life insurance?

A contract specifying a sum to be paid to a beneficiary upon the insured's death.

What is a deductible?

The amount paid out-of-pocket by a policyholder before insurance coverage begins.

What is liability insurance?

Covers insured for injuries or damages caused to other people or their property.

What is homeowner’s insurance?

Combines property and liability insurance to protect against damage costs.

What is net loss?

Excess of debit in the profit and loss account.

What is a capital market?

Market for financial assets with an original maturity of more than one year.

What is public finance?

The system by which the state collects and spends funds.

What are shares?

Certificates of ownership issued by a joint-stock company.

What are taxes?

Compulsory payments established by the state levied within certain amounts.

What is an income statement?

Financial statements prepared to indicate the profit and loss of a business.

What is a living wage?

A certain amount of money high enough to maintain a normal standard of living.

What is public debt?

The amount owed by the government to creditors outside of itself.

What is money?

Any medium universally accepted as payment for goods and services.

What is Over-the-counter (OTC)?

A market where trading is done directly between two parties without a centralized exchange.

What is revenue expenditure?

Expenditures required to meet operational costs and are recorded in the profit and loss account.

What is the standard of deferred payment?

The function of money reflecting its role in facilitating future payment obligations.

What is public revenue?

The income generated by the state through various channels, including taxation.

is a system of monetary relations through which funds are formed and used to provide financially for persons who do not participate in public work and do not get wages :

Social security

__is the subject of social life itself, the comfort and convenience of living conditions and the state of people's environment :

The quality of life

__is a special type of economic activity associated with the redistribution of risk of damage to property interests among participants and carried out by specialized organizations :

Insurance

_is the process of taking a comprehensive look at personal financial situation and building a specific financial plan to reach your goals. :

Financial planning

_is the provision of the population with the necessary material and spiritual goods for its life activity, the achieved level of their consumption and the degree of satisfaction of people's needs :

The standard of living

is a minimum set of goods and services in natural and value terms. :

The minimum consumer basket

_is a form of manifestation of social policy of the state. :

Social security

_is calculated by the authorized body on statistics according to scientifically-based physiological norms of food consumption. :

The food basket

A company that manufactures cars is preparing its profit and loss account. Under which heading will it include production labor costs? :

Cost of sales

A consumer who purchases the policy :

Policyholder

A contract between an insurer and policyholder specifying a sum to be paid to a beneficiary upon the insured’s death :

Life insurance

A contract between the individual and the insurer specifying the terms of the insurance arrangements :

Policy

A fee paid to the insurer to be covered under specified terms outlined in the policy :

Premium

A person who relies on someone else financially :

Dependent

Buying and selling short term papers or instruments :

Money market

Capital Expenditure is a part of ___. :

Balance sheet

Combines property and liability insurance into one policy to protect a home from damage costs due to perils :

Homeowner’s Insurance

Excess of debit in the profit and loss account is known as_. :

Net loss

Expenses related to the sale of goods are shown in the ……….. . :

Profit and loss account

Fund guarantees the safety of money placed into banks deposits :

KDIF

Instrument of Equity Markets :

Stocks

IPO is :

Underwriting

It covers the insured if injuries or damages are caused to other people or their property :

Liability Insurance

It is essentially the preparation of a financial blueprint for a personal organisation‘s future operations. Identify the related concept. :

Financial planning

It protects the insured from financial losses due to destruction or damage to possessions :

Renter’s Insurance

Location where securities trading is done directly between two parties :

OTC

Loss on sale of an old car is debited to the 12_. :

Profit and loss account

Mark out which is not a capital expenditure. :

Purchase of a new spark plug

Market for financial assets with an original maturity of more than one year :

Capital market

Name the process that enables the personal management to foresee the fund requirements, both the quantum as well as the timing. :

Financial planning

Net loss in a profit and loss account should be _ in the balance sheet. :

Deducted from capital

OTC is abbreviation of :

Over-the-Counter

Personal financial plans focus on: :

Financial aspects and budgets

Profit and loss account shows the _.

Profit earned or loss suffered by the business

Revenue expenditure is recorded in the _.

Profit and loss account

Securities in form of loan issued by a corporation or government :

Bond

Social insurance fund :

GFSS

The amount paid out of pocket by the policyholder for the initial portion of a loss before the insurance coverage begins- the deductible is stated in the policy :

Deductible

The central location of securities trading :

Stock Exchanges

The credit side of a profit and loss account records _. :

Indirect income

The first level of the banking system is presented by: :

The central bank

The main goal of commercial bank is :

profit maximization

The market in which previously issued securities are sold.:

Secondary Market

The market in which security is sold for the first time. :

Primary Market