Economic Principles

What is liquidity

How quickly and easily an asset can be converted into cash without losing value

What is interest rate

The cost of borrowing money or the reward for saving it expressed as a percentage

What is inflation

The general increase in prices over time that lowers the purchasing power of money

What is opportunity cost

The value of the next best choice you give up when making a financial decision

What is capital gain

The profit made when you sell an asset for more than its original purchase price

What is dividend

A share of a company's profits paid regularly to its shareholders

What is cash flow

The total amount of money moving into and out of a business over a specific period

What is return on investment

A measure used to evaluate the profitability of an investment relative to its cost