answersLogoWhite

0

Select your study mode:

Cards in this guide (21)
What is the Gold Standard

The basing of a currency on gold. In some sense in such a system, gold IS the currency and money is a symbol for a corresponding amount of gold, backed by the issuer - i.e. the bank promises that by some means you are always able to exchange X of its currency for Y gold, and vice versa.

No country still uses the gold standard - modern currencies are free floating with their value determined by local markets and exchange rates with other currencies.

Even so, national governments still usually carry large gold reserves as a holdover from the time when they needed them as a physical guarantee. Gold has remained valuable over thousands of years so it can always be sold as needed for any currency (including its own) that a country might need, or bought to safely store wealth.

A currency system in which each dollar is worth 1/20 of an ounce of gold (gradpoint)

What is Standard and Poors

Standard and Poors is one of the 3 premier Credit Rating Agencies in the world.

What were greenbacks

Paper money, whose issue was authorized by the Union Congress in February 1862.

They were called greenbacks because of their colors.

commodity money used by the union during the civil war

What happens during a bank run

customers attempt to withdraw more money than the bank has on hand

What would add up 10.25 with quarters and dimes

to many to count... 100 dimes 1 quarter. 41 quarters. 50 dimes 21 quarters

Is a patent a financial asset

It could be. Financial assets are real assets.

When was the first Bank of the United States formed by the Federalists

in the late eighteenth century

The main advantage of diversification as an investment policy is that it

Reduces risks to investors

In the financial system who are the borrowers

households, individuals, and businesses

What is a mortgage used to purchase

Real Estate

What is the option to sell shares of stock at a specified time in the future called

It's actually called a call option. I will provide you with a definition I just found for this, and some additional tips on options trading.

- - - - -

The option to sell shares is a put. The option to buy them is a call.

What is is the index that shows how 30 specific industrial stocks have traded called

The Dow Jones Industrial Average is the stock market index that shows how 30 specific industrial stocks have traded.

What is the annual rate of return on a bond bought on the open market called

yield

Which of the following is a true statement about the call option

It is a way for investors to avoid paying a future higher price of a stock.

NOVANET

What markets in which money is lent for periods longer than one year

Capital markets

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

Primary Market

Why would business owners want to invest in capital goods

because

What is a fund that pools the savings of many individuals and invests this money in a variety of stocks bonds and other financial assets called

mutual fund

Was wheat used as commodity money by the American colonies

where was salt used as commodity money

What is an institution that helps channels funds for savers to borrowers called

a financial intermediary

What is difference between a primary market and a secondary market

a primary market is financial assets that can be redeemed only by the original investor; a secondary market's assets can be resold

Related study guides

Investing and Financial Markets

25 cards

What is the Gold Standard

What is Standard and Poors

What were greenbacks

What happens during a bank run

➑️
See all cards

Investing and Financial Markets

22 cards

What is the Gold Standard

What is Standard and Poors

What happens during a bank run

What would add up 10.25 with quarters and dimes

➑️
See all cards

Investing and Financial Markets

23 cards

What is the Gold Standard

What is Standard and Poors

What happens during a bank run

What would add up 10.25 with quarters and dimes

➑️
See all cards

Investing and Financial Markets

27 cards

What is the Gold Standard

What is Standard and Poors

What happens during a bank run

What would add up 10.25 with quarters and dimes

➑️
See all cards

Investing and Financial Markets

28 cards

How does bankruptcy affect interest rates on loans and credit cards

What is the Gold Standard

What is Standard and Poors

What happens during a bank run

➑️
See all cards