Econ Chpt 11 Vocab Quiz

The act of redirecting resources from being consumed today so that they may create benefits in the future; the use of assets to earn income or profit.

System that allows the transfer of money between savers and borrowers.

Claim on the property or income of a borrower.

Institution that helps channel funds from savers to borrowers.

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

Spreading out investments to reduce risk.

A collection of financial assets.

An investment report to potential investors.

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

The interest rate that a bond issuer will pay to a bondholder.

The time at which payment to a bondholder is due.

The amount that an investor pays to purchase a bond and that will be repaid to the investor at maturity.

The annual rate of return on a bond if the bond were held to maturity.

Low-denomination bond issued by the United States government.

Bond issued by a state or local goverrnment or municipality to finance such improvement as highways, state buildings, libraries, parks and schools.

Bond that a corporation issues to raise money to expand its business.

An independent agency of the government that regulates financial markets and investment companies.

A lower-rated, potentially higher-paying bond.

Market in which money is lent for periods longer than a year.

Market in which money is lent for periods of less than a year.

Market for selling financial assets that can only be redeemed by the original holder.

Market for reselling financial assets.

Portion of stock.

Claims of ownership in a corporation.

The difference between a higher selling price and a lower purchase price, resulting in a financial gain fo the seller.

The difference between a lower selling price and a higher purchase price resulting in a financial loss to the seller.

The division of a single share of stock into more than one share.

A person who links buyers and sellers of stock.

A business that specializes in trading stocks.

A market for buying and selling stock.

American Market for OTC securities.

An electronic marketplace for stocks and bonds.

Contracts to buy or sell at a specific date in the future at a price specified today.

Contracts that give investors the choice to buy or sell stock and other financial assets.

The option to buy shares of stock at a specifiied time in the future.

The option to sell shares of stock at a specified time in the future.

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

A steady drop in the stock market over a period of time.

Index that shows how certain stocks have traded.

Index that shows the price changes of 500 different stocks.

The collapse of the stock market in 1929.

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