Principles of Finance Lesson 1 - 3

Refers to the cost of borrowing money expressed as a percentage of the amount borrowed.

Depository institution that specializes in saving accounts and real estate financing. Got its name from thrifty people.

Independent Federal Agency that serves to supervise and regulate federal credit unions.

Bartering was the system used before money

Financial Analyst is a professional who provides financial planning and advice on financial matters.

Refers to the ability of individuals to make appropriate decisions in managing their personal finances.

Cooperative non-profit financial institution that is privately owned and controlled by its members

Insurance Companies do not protect persons against the risk of financial loss

How many Federal Reserve branch banks are there?

Financial resources (money, property) used to make money, can take the form of equity or debt

If you invested $1,000 for 5 years, which of the following would maximize your investment?

Financial services industry helps consumers, businesses, and governments manage money

Refers to what an amount invested today at a particular rate will be worth in the future.

Which of the following are the most common types of financial intermediaries?

Any amount of money is worth more the sooner it is received based on its:

The FDIC is a U.S. agency that promotes public confidence in the U.S. financial system & ensures deposits up to $250,000

Acts as a service for both those who have extra money to save/lend & channels it to those who want to invest

Time value of money takes into consideration

When two people have something that the other person wants:

Which of the following does the financial services industry help manage their money?

Refers to the amount of interest based on a principal amount and not on earned interest

Money is durable, portable, scarce, and divisible.

Money paid to the insurance companies

Time Value of Money refers to money's potential to decrease over time

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

Depository institution where one can keep and borrow money and take care of financial affairs.

Refers to the central bank of the United States

Deflation is the declining value of money due to rising prices

All of the following are functions of money EXCEPT:

Refers to the science or study of the management of money, credit, banking, and investments.

The Financial Services Industry is the largest industry in the world.

Degree of uncertainty of return on an asset; possibility of loss

Being financially literate does which of the following:

Investment company that combines money from a large group of individuals to buy stocks and other investments.