$100 $400 $300 $200 $400 $200 $100$100 $400 $200$200 $500$500 $300 $200 $500 $100 $300 $100 $300 $500 $300 $400$400 $500

Financial System

Investing

Financial Assets

Financial Markets

Vocabulary

FinancialSystem Investing FinancialAssets FinancialMarkets Vocabulary $100 $300 $200 $400 $500 $

C 1 - $100 This refers to the dollars that become available when people abstain from consumption

C 1 - $200 Firm that makes loans to consumers and buys installment contracts from merchants who sell goods on credit

C 1 - $300 Institution that channels savings to investors

C 1 - $400 A nonbank financial institution set up to provide financial protection for survivors of the insured

C 1 - $500 Nondepository institution that channels savings to investors

C 2 - $100 Situation in which the outcome is not certain, but the probabilities can be estimated

C 2 - $200 Stocks that represent ownership shares in a corporation

C 2 - $300 Long-term, tax-sheltered time deposits people set up to help provide income during retirement

C 2 - $400 Tax-deferred investment and savings plan that acts as a personal pension fund for many employees

C 2 - $500 Holding a large number of stocks so that increases in some will offset unexpected declines in others

C 3 - $100 Company that sells stock in itself to individual investors and then invests the money in stocks and bonds of other corporations

C 3 - $200 US Government obligation with a maturity of 2 to 10 years

C 3 - $300 Bond that carries an exceptionally high risk of nonpayment and a low rating

C 3 - $400 Futures contract giving a buyer the right to cancel a contract to sell something

C 3 - $500 Argument that stocks are always priced about right because they are closely watched

C 4 - $100 Market in which financial capital is loaned and/or borrowed for one year of less

C 4 - $200 Market in which financial capital is loaned and/or borrowed for more than one year

C 4 - $300 A market where existing financial assets can be resold to new owners

C 4 - $400 Market in which a transaction is made immediately at the market price

C 4 - $500 Electronic marketplace for securities not listed on organized exchanges such as NYSE

C 5 - $100 Life of a bond or length of time funds are borrowed

C 5 - $200 Price paid at regular intervals for an insurance policy

C 5 - $300 Measure of stock performance based on 500 stocks traded on the NYSE, AMEX, and OTC markets

C 5 - $400 Person designated to take ownership of an asset if the owner of the asset dies

C 5 - $500 Bond’s annual coupon interest divided by purchase price; measure of bond’s return

C 1 A - $100 Savings $

C 1 A - $200 FinanceCompany $

C 1 A - $300 FinancialIntermediary $

C 1 A - $400 LifeInsuranceCompany $

C 1 A - $500 $NonbankFinancialInstitution

C 2 A - $100 Risk $

C 2 A - $200 Equities $

C 2 A - $300 Individual Retirement Account (IRA) $

C 2 A - $ (k) $

C 2 A - $500 PortfolioDiversification $

C 3 A - $100 Mutual Fund $

C 3 A - $200 Treasury Note $

C 3 A - $300 Junk Bond $

C 3 A - $400 Put Option $

C 3 A - $500 Efficient Market Hypothesis (EMH) $

C 4 A - $100 Money Market $

C 4 A - $200 Capital Market $

C 4 A - $300 SecondaryMarket $

C 4 A - $400 SpotMarket $

C 4 A - $500 $Over-the-counter Market (OTC)

C 5 A - $100 Maturity $

C 5 A - $200 $Premium

C 5 A - $300 Standard & Poor’s 500 (S&P 500) $

C 5 A - $400 $Benificiary

C 5 A - $500 $ Current Yield

Bonds $ FJ Topic

FJ Question $ Which two companies examine issuer’s of bonds on their overall financial health and stability and then publish bond ratings?

FJ Ans $ Standard & Poor’s and Moody’s

END OF GAME