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Finance Vocabulary Flashcards | StudBud
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Finance Vocabulary
Finance Vocabulary
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StudBud Administration
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vocabulary #financial literacy
Flashcards
25 cards
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Questions
25
Answers
1
The sum of all of national debts is called
same as year GDP
deficit
national debt
18 trillion
2
Specific, measurable, attainable, realistic, time bound - written goals matter a lot for $.
True
False
3
Installment credit is for a fixed amount, time period, interest rate, & fixed payment
True
False
4
An amortization schedule is a table detailing each payment on an amortizing loan (mortgage)
True
False
False - wht make periodic payments or monthly payments -
True - how much of the payment goes to principal & interest
5
A bond that is trading at less than the $1000 dollar face amount is called a ______ bond
callable
discount
Premium
special purpose
6
The APR or annual percentage rate is the
the rate banks charge their best customers
the loan payment divided into principal and interest
Just the interest rate - you don't add fees/costs
the annual rate charged for borrowing $ adding fees/costs
7
A muncipal bond is a bond by a city or city department that may be state or city tax free
False
True
8
What happens when there is a low price for a common item?
no change in demand
a rise in the demand for the product
supply shifts
demand falls
9
What functions do the CME/Chicago Board of Trade markets perform?
price discovery, liquidity, and stabilization
storage of food
frustrate farmers and other producers, keep prices too low
delivery of futures contracts
10
This is the point or price and quantity at which the supply and demand meet
equilibrium
suppmand point
intersection point
equal distant
11
What are agricultural products, precious metals, and financial instruments known as ?
bonds
commodities
chicago board of trade
stocks
12
A bond that is trading at over the $1000 dollar initial face amount is called a _____ bond.
convertible
special
premium
discount
13
Contracts that are used by heavy users to hedge future prices to minimize price exposure
options
futures
strategic price contracts
standards and grades
14
A country that defaults on its legal contractual obligations - bonds - this is called
illegal and not allowed
bond failure
bankruptcy
bond repos
15
When the price of an item goes up, suppliers are ______________likely to want to produce more
the same
dependent on competition
less
more
16
Revolving Credit is credit = changes, amount, payment, & time period can change ex credit card
False
True
17
when government tax revenues are less than government expenditures
surplus
deficit
unfunded liabilities
national debt
18
What market is many times larger than the stock and bond markets?
FOREX
pork bellies
precious metals
dubai
19
How is the US able to spend more money than we have year after year?
everyone does it, so it just works
we just put off bills, pay late
We borrow, usually by selling bonds, lots of countries buy
The US sells land or other assets
20
A contract with the right but not the obligation to buy something at a certain time & price
option
bond
swap
stock
21
A bond is government/corporate IOU-you buy it & they pay you interest & then pay you back later
True
False
22
The process of using futures contracts to minimize your price exposure
speculating
open outcry
hedging
computer alogrithms
23
Social security, medicare, medicaid at current payouts are unsustainable moving forward in time
True
False
24
Prime Rate is the rate that
Credit unions give
Banks & Credit Unions charge best customers w/ good credit
The rate the federal reserve discount window opens up at
The rate banks loan to each other overnight
25
when tax revenues surpass government expenditures - it is called
national debt
deficit
surplus
future unfunded liabilities
