Ch 6.5 Investing and Financial Assets Quiz

What is the definition of investment?

• The act of redirecting money and resources from being consumed today so they may create beneficial returns in the future.

• The network of structures and mechanisms that allows the transfer of money between savers and borrowers.

• A document that claims on property or income of the borrowers.

• Institutions that help channel funds from savers to borrowers.

What is the definition of financial system?

• The act of redirecting money and resources from being consumed today so they may create beneficial returns in the future.

• The network of structures and mechanisms that allows the transfer of money between savers and borrowers.

• A document that claims on property or income of the borrowers.

• Institutions that help channel funds from savers to borrowers.

What is the definition of financial asset?

• The act of redirecting money and resources from being consumed today so they may create beneficial returns in the future.

• The network of structures and mechanisms that allows the transfer of money between savers and borrowers.

• A document that claims on property or income of the borrowers.

• Institutions that help channel funds from savers to borrowers.

What is the definition of financial intermediary?

• The act of redirecting money and resources from being consumed today so they may create beneficial returns in the future.

• The network of structures and mechanisms that allows the transfer of money between savers and borrowers.

• A document that claims on property or income of the borrowers.

• Institutions that help channel funds from savers to borrowers.

What is the definition of portfolio?

• A collection of financial assets

• The network of structures and mechanisms that allows the transfer of money between savers and borrowers.

• A document that claims on property or income of the borrowers.

• Institutions that help channel funds from savers to borrowers.

What is the definition of mutual fund?

• A collection of financial assets

• The network of structures and mechanisms that allows the transfer of money between savers and borrowers.

• Pools the savings of many individuals and invests this money in a variety of stocks and bonds and other securities.

• Institutions that help channel funds from savers to borrowers.

What is the definition of hedge fund?

• A collection of financial assets

• The network of structures and mechanisms that allows the transfer of money between savers and borrowers.

• Pools the savings of many individuals and invests this money in a variety of stocks and bonds and other securities.

• A private investment organization that employs risky strategies that often make large profits for investors.