Cards in this guide (23)
What is Standard and Poors
Standard and Poors is one of the 3 premier Credit Rating
Agencies in the world.
What is a prospectus
A prospectus is a document that describes a financial security
for potential buyers.
What did the US Supreme Court rule in Furman v Georgia
In Furman vs. Georgia the court ruled that all existing death
penalty laws violated the constitution.
Is a patent a financial asset
It could be. Financial assets are real assets.
What happens when the supply of a nonperishable good is greater than the consumer wants to buy
Either the price drops until the consumers are prepared to buy
more, or supplier are left holding surplus stocks until replacement
purchases clear these inventories.
No manufactured good is truly non-perishable, and so will
eventually require replacement.
What are limited quantities of resources to meet unlimited wants
The main advantage of diversification as an investment policy is that it
Reduces risks to investors
A collection of financial assets is known as an 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
The physical capital used by a woodworker to make furniture would include
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 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
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.
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
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 is a bank
The word bank can refer to:
- a place where a person can borrow and place money or settle financial affairs
- an individual branch office of such an institution
- an edge of a river or some other watercourse
- an elevation under the sea
- the incline of an aircraft
- an incline or hill as encountered by rail transport
- a quantity of clouds on the horizon
- a row or panel of items stored or grouped together
- a row of contiguous keys on a computer keyboard
What kind of decision cannot be made at the margin
whether to spend your two-week vacation on the shore or in
If a consumer is waiting to buy a sweater he or she found at a department store until after the holiday season which factor is most likely influencing the decision to wait
If a consumer is waiting to buy a sweater he or she found at a
department store until after the holiday season, which factor is
most likely influencing the decision to wait?