Prentice Hall Economics Chapter 11

Markets in which $ is lent for periods longer than a year are known as

Which of the following bonds are issued by the US Government?

The option to buy shares of stock at a specified time in the future

Pool the savings of individuals and invest in a variety of stocks, bonds, and other assets

Issued in large denominations; issued to help raise $ to expand businesses.

Investors who sell stocks for less than they paid for them experience a..

A person who links buyers and sellers of stock

Speculation is..

State & Local gov't issue these to finance improvements such as roads, bridges, and schools

The purpose of a financial intermediary is to help channel funds..

A financial system brings together..

The time at which the payment to the bondholder is due

A bond's par value is usually repaid..

The American Market for over-the-counter (electronic) securities

Contracts that give investors the choice to buy or sell stock & other financial assets

Which of the following is a reason for diversification?

Portions of stock are known as ..

Financial assets that can be sold and resold (ex: Stock)

This caused the start of the Great Depression

Includes savers & borrowers and allows the transfer of $ between them to take place

When the stock market falls over a period of time, it is know as a..

When owners of common stock decide to split a share of stocks, this is known as a

A collection of financial assets is known as

The 'OTC' market stands for

Redirecting resources from being consumed today so that they can create wealth tomorrow

Bonds are..

A Bond's Face Value..

The two major firms that issue Bond ratings

An independent government agency the regulates financial markets and investment companies

Investment is the act of..