WorksheetsChapter 11 Test- Financial markets
Total questions: 20
Worksheet time: 10mins
income not used for consumption
Investment
Savings
diversification
return
The use of income today that allows for greater production in the future.
Investment
Savings
secondary market
risk
Collects funds from savers and invests the funds in loans and other financial assets
investment objective
secondary market
primary market
financial intermediary
Two issues that play a major role in setting an investment objective.
time and results
time and income
diversification and return
risk and return
the share of ownership in a corporation that gives holders voting rights and a share of profit.
Common Stock
Preferred Stock
Stock index
primary market
The interest rate paid on a bond
Coupon rate
Par Value
bond premium
capital gain
The amount that a bond issuer promises to pay the buyer at maturity.
Par value
coupon rate
Capital gain
return
What is the relationship between risk and return?
inverse
direct
multiple
opposite
Banks bring together...
savers and spenders
savers and borrowers
dealers and druggies
cheeseburgers and fries
Market where financial assets are resold
primary market
secondary market
tertiary market
money market
Stock that is paid first and offers no voting rights
common stock
preferred stock
stock exchange
Primary stock
