Finance MidTerm

Question 1

A private investment fund that is lightly regulated and uses leverage to invest in many markets

Accepted Answer

hedge fund

Question 2

Debt securities that are issued by a borrower to raise capital.

Accepted Answer

bonds

Question 3

An expense that remains the same from period to period.

Accepted Answer

fixed expense

Question 4

money’s potential to grow in value over time

Accepted Answer

time value of money

Question 5

Stock of a financially sound company with a history of strong earnings and reliable dividends.

Accepted Answer

blue chip stock

Question 6

An individual who organizes and starts a business and assumes all financial risk for it.

Accepted Answer

Entrepreneur

Question 7

Which of the following will maximize your investment?

Accepted Answer

compound interest

Question 8

Interest earned on both the principal amount and any interest already earned.

Accepted Answer

compound interest

Question 9

To control the supply or sale of a particular product, stock, commodity, or other asset.

Accepted Answer

corner the market

Question 10

Savings account with higher interest rates and higher minimum deposit levels.

Accepted Answer

money market account

Question 11

How many Federal Reserve branch banks are located throughout our nation?

Accepted Answer

12

Question 12

Any object of value, including cash, investments, property, and personal possessions.

Accepted Answer

asset

Question 13

The financial resources that are used to make money, which can take the form of equity or debt?

Accepted Answer

capital

Question 14

A co-op nonprofit financial institution that is privately owned and controlled by its members.

Accepted Answer

credit union

Question 15

A high-risk, high-yield bond of low credit quality

Accepted Answer

junk bond

Question 16

An expense that changes from period to period,such as food or gasoline costs.

Accepted Answer

variable expense

Question 17

The central bank of the United States.

Accepted Answer

The Federal Reserve

Question 18

A method for measuring a particular sector of the stock market

Accepted Answer

market index

Question 19

Companies that pool money from a large group of investors to buy stocks and other investments

Accepted Answer

mutual funds

Question 20

A federal agency responsible for regulating the securities industry.

Accepted Answer

SEC

Question 21

The date when a bond's principal is repaid to the investor.

Accepted Answer

maturity date

Question 22

A security representing a share of ownership in a company.

Accepted Answer

stock

Question 23

Which of the following is considered part stock and part mutual fund?

Accepted Answer

ETF

Question 24

The liability of a corporation’s owners for no more than they have invested in the business.

Accepted Answer

limited liability

Question 25

A loan that is backed by collateral such as cars, houses, or other assets.

Accepted Answer

secured loan

Question 26

A method of raising capital through the sale of stock.

Accepted Answer

equity financing

Question 27

How much money does the FDIC insure and guarantee deposits for?

Accepted Answer

$250,000

Question 28

Record of money deposited for a stated time period at a fixed interest rate.

Accepted Answer

CD

Question 29

A detailed plan to manage the spending and saving of money

Accepted Answer

budget

Question 30

The largest investment companies in terms of size, profit, and/or prestige.

Accepted Answer

bulge bracket investment bank

Question 31

A financial institution that protects persons against the risk of financial loss?

Accepted Answer

insurance company

Question 32

The process of comparing two sets of records and getting them to correspond.

Accepted Answer

reconcilliation

Question 33

The ability of individuals to make appropriate decisions in managing their personal finances?

Accepted Answer

financial literacy

Question 34

The general rise in prices of goods and services in an economy.

Accepted Answer

Inflation Risk

Question 35

A method of raising capital through the sale of bonds, bills, or notes.

Accepted Answer

debt financing

Question 36

What were the 1920's known as?

Accepted Answer

The "Roaring" Twenties

Question 37

Income from rental property or other business activity where the owner isn't actively involved

Accepted Answer

passive income

Question 38

A legal entity that is separate from its owners.

Accepted Answer

Corporation

Question 39

Refers to the degree of uncertainty of return onan asset; the possibility of loss

Accepted Answer

risk

Question 40

An investor's ability to cope with fluctuations in the value of their portfolio.

Accepted Answer

Risk Tolerance

Question 41

Financial tools such as stocks, bonds, and mutual funds that are traded on a stock exchange.

Accepted Answer

securities

Question 42

A small investment firm that specializes in a limited number of services.

Accepted Answer

boutique investment firm

Question 43

The first time a company sells shares of its stock to the public.

Accepted Answer

IPO

Question 44

The cost of borrowing money expressed as a percentage of the amount borrowed?

Accepted Answer

interest

Question 45

A tax deferred account that allows individuals to plan for their retirement.

Accepted Answer

IRA

Question 46

Which of the following is NOT an example of good debt?

Accepted Answer

car loan

Question 47

An obligation that legally compels an individual to settle a debt.

Accepted Answer

liability

Question 48

The largest electronic stock exchange in the United States.

Accepted Answer

NASDAQ

Question 49

Income from investments, including dividends, interest, or the sale of a property

Accepted Answer

portfolio income

Question 50

Any expense that is not considered essential to the household or business.

Accepted Answer

discretionary expense

Finance MidTerm

Questions 50

Finance MidTerm

Questions 50