Econ Lesson 8 VOcab

What is an asset?

• A method of dividing investment assets

• A signed form instructing a bank to pay a specified amount

• A business whose main purpose is to receive deposits

• Anything owned to which a market value can be assigned

Which of the following best describes a bear market?

• A prolonged period of rising stock prices

• A system in which banks keep a portion of deposits in reserve

• A method of lowering risk by investing in a variety of assets

• A prolonged period of falling stock prices

What is the primary purpose of a bank?

• To manage mutual funds

• To receive deposits and make loans

• To issue bonds

• To provide credit cards

What is a bond?

• A method of calculating how long it will take to double an investment

• A card authorizing the user to buy goods and services

• A loan to a government or corporation with a fixed interest rate

• An investment that represents ownership in a business

What is the function of a brokerage?

• To manage the money supply

• To provide commercial loans

• To issue banknotes

• To buy and sell stocks and bonds for investors

What is a budget?

• A system in which banks keep a portion of deposits in reserve

• A record of a person’s borrowing and repayment

• A method of dividing investment assets

• A plan for spending and saving

What is a bull market?

• A method of lowering risk by investing in a variety of assets

• A prolonged period of falling stock prices

• A prolonged period of rising stock prices

• A system in which banks keep a portion of deposits in reserve

What is a check?

• A card authorizing the user to buy goods and services

• A business whose main purpose is to receive deposits

• A method of dividing investment assets

• A signed form instructing a bank to pay a specified amount

What is compound interest?

• A periodic payment for the use of borrowed funds

• A method of calculating how long it will take to double an investment

• Interest paid on the original amount and all interest earned

• Interest paid only on the original amount deposited

What is a credit card?

• A card authorizing the user to buy goods and services with borrowed funds

• A method of dividing investment assets

• A card authorizing the user to access their own funds

• A signed form instructing a bank to pay a specified amount