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Investing and Financial Markets

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Term1/22
What is the Gold Standard
Definition1/22

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)

Term1/22
What is Standard and Poors
Definition1/22

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

Term1/22
What is a stock portfolio
Definition1/22

A stock portfolio is all the stocks that you own. I would venture to say that if you had one stock in any company, you would have one stock in your portfolio. If you had 5 different stocks, you would have a total of 5 stocks in your portfolio.

Term1/22
What is a NOW account
Definition1/22

A deposit account that pays interest.

Term1/22
What would add up 10.25 with quarters and dimes
Definition1/22

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

Term1/22
The main advantage of diversification as an investment policy is that it
Definition1/22

Reduces risks to investors

Term1/22
Money serves as a good store of value except when an economy experiences a period of
Definition1/22

...inflation

Term1/22
How does a pension fund act as an investor
Definition1/22

the company invests money collected from employers

Term1/22
In the financial system who are the borrowers
Definition1/22

households, individuals, and businesses

Term1/22
What is the automated electronic securities market that links sales in the US Asia and Europe called
Definition1/22

NASDAQ

Term1/22
What is the option to sell shares of stock at a specified time in the future called
Definition1/22

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.

Term1/22
What is the annual rate of return on a bond bought on the open market called
Definition1/22

yield

Term1/22
Which was not included in the support for harry hess's hypothesis of sea-floor spreading
Definition1/22

Granitic strips in the ocean floor ...

Novanet

Term1/22
Which of the following is a true statement about the call option
Definition1/22

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

NOVANET

Term1/22
What is the amount paid to purchase a bond that will be repaid at maturity
Definition1/22

face value

Term1/22
What markets in which money is lent for periods longer than one year
Definition1/22

Capital markets

Term1/22
What is the market for selling financial assets that can only be redeemed by the original holder
Definition1/22

Primary Market

Term1/22
How is the potential rate of return on investments related to the level of risk
Definition1/22

Higher risk investments have a higher potential return.

Term1/22
Why would business owners want to invest in capital goods
Definition1/22

because

Term1/22
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
Definition1/22

mutual fund

Term1/22
What would you expect that since bonds are generally among the safest investments
Definition1/22

have low interest rates

Term1/22
What happens if I don't pay back my student loans
Definition1/22

Failing to pay back a student loan can have negative consequences. It can negatively effect your credit score.

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Cards in this guide (22)
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 is a stock portfolio

A stock portfolio is all the stocks that you own. I would venture to say that if you had one stock in any company, you would have one stock in your portfolio. If you had 5 different stocks, you would have a total of 5 stocks in your portfolio.

What is a NOW account

A deposit account that pays interest.

What would add up 10.25 with quarters and dimes

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

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

Reduces risks to investors

Money serves as a good store of value except when an economy experiences a period of

...inflation

How does a pension fund act as an investor

the company invests money collected from employers

In the financial system who are the borrowers

households, individuals, and businesses

What is the automated electronic securities market that links sales in the US Asia and Europe called

NASDAQ

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

yield

Which was not included in the support for harry hess's hypothesis of sea-floor spreading

Granitic strips in the ocean floor ...

Novanet

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 is the amount paid to purchase a bond that will be repaid at maturity

face value

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

How is the potential rate of return on investments related to the level of risk

Higher risk investments have a higher potential return.

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

What would you expect that since bonds are generally among the safest investments

have low interest rates

What happens if I don't pay back my student loans

Failing to pay back a student loan can have negative consequences. It can negatively effect your credit score.

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