External factors, such as the economy and industry trends, that could impact the borrower's ability to repay.

A legally binding contract between a lender and a borrower that outlines the terms and conditions of the loan.

Represents ownership with voting rights and variable dividends.

Ownership with fixed dividends and priority over common stock in liquidation.

Shares of companies expected to grow earnings/revenue faster than the market average.

Shares traded at a lower price relative to fundamentals, considered undervalued by investors.

Shares of companies with regular and high dividends, providing steady income to investors.

Shares of large, well-established, and financially stable companies with a history of reliability.

Shares of small companies traded at low prices, often high-risk investments.

SI = P × r × t, where I is the interest, P is the principal, r is the interest rate, and t is the time period.

Interest calculated on the principal amount as well as on the interest that has been added to the principal over previous periods.

Time Value of Money (TVM)

The principle that a sum of money has a different value today than it will in the future due to its potential earning capacity.

The current value of a sum of money that is to be received in the future, discounted back at a specific interest rate.

The value of a sum of money at a specific date in the future based on an assumed rate of growth.

What is an Ordinary Annuity?

Payments are made at the end of each period.

What is an Annuity Due?

Payments are made at the beginning of each period.

Details each payment over the life of a loan or investment, showing the breakdown between principal and interest.

Bangko Sentral ng Pilipinas (BSP)

Oversees monetary policy, controls inflation, and ensures financial stability.

Where investors buy and sell long-term debt or equity-backed securities.

Represent ownership in a company, potentially offering dividends and capital appreciation.

Loans investors make to corporations or governments, offering regular interest payments.

Pooled investments managed by professionals, ideal for diversification.

Real Estate Investment Trusts (REITs)

Allow individuals to invest in a portfolio of income-generating real estate assets.

The possibility of investments declining in value due to economic downturns or market fluctuations.

The risk that a borrower may default on their obligations.

The difficulty of selling an asset quickly without a significant loss in value.

The management of an individual's or family's financial resources.

Income Management, Budgeting, Savings and Investments, Debt Management, Risk Management, Retirement Planning.

What are the key components of Personal Finance?

A contract where the insurer agrees to pay a lump sum to beneficiaries upon the insured's death.

Coverage for a specified term (e.g., 10, 20 years).

Lifetime coverage with a savings component.

Covers vehicle-related damages or liabilities.

The knowledge and skills required to make informed and effective financial decisions.

Through education, reading financial news, learning basic concepts, and seeking professional advice.

How can one become financially literate?

Set Financial Goals, Calculate Income, Track Expenses, Allocate Resources, Create an Emergency Fund, Plan for Debt Repayment, Review and Adjust Regularly.

What are the steps to Plan and Budget?

Financial Concepts and Principles Flashcards

Student preview

43 questions

Show all answers

1.

FLASHCARD QUESTION

Front

Debt Financing?

Back

Borrowing money that must be repaid with interest over time, often through loans or bonds.

2.

FLASHCARD QUESTION

Front

Equity Financing

Back

Raising capital by selling ownership shares in the company, typically through stocks, without repayment obligations.

3.

FLASHCARD QUESTION

Front

Character, Capacity, Capital, Collateral, Condition.

Back

What are the 5C's of Credit?

4.

FLASHCARD QUESTION

Front

Character

Back

The borrower's trustworthiness, reputation, and history of repaying debts.

5.

FLASHCARD QUESTION

Front

Capacity

Back

The borrower's ability to repay the loan based on income and existing financial obligations.

6.

FLASHCARD QUESTION

Front

Capital

Back

The borrower's financial assets or net worth that show their investment or stake in the venture.

7.

FLASHCARD QUESTION

Front

Collateral

Back

Assets pledged by the borrower to secure the loan in case of default.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

35 questions

Compensation and Earnings Overview

Flashcard

•

11th Grade

40 questions

FM-MIDTERM P1-2

Flashcard

•

University

35 questions

General Principles of Teaching

Flashcard

•

University

48 questions

phrasal verb

Flashcard

•

12th Grade

30 questions

MW2 - WF

Flashcard

•

12th Grade

44 questions

Electromagnetism IGCSE

Flashcard

•

9th - 11th Grade

40 questions

Directions - English to Estonian

Flashcard

•

University

Popular Resources on Wayground

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

54 questions

Analyzing Line Graphs & Tables

Quiz

•

4th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

15 questions

Equivalent Fractions

Quiz

•

4th Grade

Discover more resources for Business

13 questions

BizInnovator Startup - Experience and Overview

Quiz

•

9th - 12th Grade

15 questions

SMART Goals Setting

Quiz

•

9th - 12th Grade