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 would add up 10.25 with quarters and dimes
to many to count... 100 dimes 1 quarter. 41 quarters. 50 dimes
21 quarters
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
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 are objects called that have value in and of themselves as well as value as a means of exchange
What is the automated electronic securities market that links sales in the US Asia and Europe called
When you own a mutual fund what exactly do you own
Mutual fund is a low risk investment. If you invest in a mutual
fund, you owns shares of the mutual fund company who is selling you
fund. But you do not actually own any underlying asset of the
stocks or securities that mutual fund has invested in even they are
using your money to invest.
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.
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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
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
What is the market for selling financial assets that can only be redeemed by the original holder
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
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
What would you expect that since bonds are generally among the safest investments
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
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.