Term
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Definition
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Term
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Definition
| refers to the dollars that become available when people abstain form consumption. |
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Term
| Financial system (section 1) |
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Definition
| A network of savers and investors and financial institutions that work together to transfer savings to investors |
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Term
| cerifiate of deposit (section 1) |
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Definition
| A receipt showing that an investor has made and investment bearing loan to a bank or a government or corporate bond. |
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Term
| financial asset (section 1) |
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Definition
| Claims on the property and the income of the borrower |
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Term
| financial intermediary (section 1) |
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Definition
| Financial institutions that led the funds that savers provide to borrowers. |
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Term
| nonbank financal institutions (section 1) |
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Definition
| Non-depository institutions that channel savings to borrowers |
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Term
| finance company (section 1) |
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Definition
| Is a firm that specializes in making loans directly to consumers and in buying and installing contracts from merchants who sell goods on credit. |
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Term
| bill consolidation loans (section 1) |
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Definition
| A loan consumers use to pay off other bills. |
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Term
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Definition
| is the price the insured pays for this policy and it is usually paid monthly,Quarterly ,or an annually for the length of protection. |
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Term
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Definition
| Is a company that sells stock in itself to individual investors and then invests that of the money it receives in stocks and bonds issued by other corporations. |
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Term
| net asset value (NAV) (section 1) |
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Definition
| the net value of the mutual fund divided by the number of shares issued by the mutual fund. |
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Term
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Definition
| Is a regular payment intent to provide income security to someone who has worked a certain number of years, reach a certain age, are suffered a certain kind of injury. |
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Term
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Definition
| Is a fund set up to collect income and disperse payments to those persons eligible for retirement, old age or disability benefits. |
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Term
real estate investment trust(REIT)
(section 1) |
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Definition
| A company organized primarily to make loans to construct companies that build homes. |
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Term
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Definition
| Is a situation in which the outcome is not certain, but probabilities for each possible outcome can be estimated. |
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Term
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Definition
| A tax deferred investment and savings plan that acts as a personal pension fund for employees. |
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Term
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Definition
| the stated interest on the debt. |
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Term
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Definition
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Term
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Definition
| The principle are total amount initially borrowed that must be repaid to the lender at maturity |
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Term
| current yield (section 2) |
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Definition
| The annual interest divided by the purchase price. |
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Term
| Municipal bonds (section 2) |
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Definition
| Bonds issued by state and local government. |
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Term
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Definition
| Meaning that the federal government does not tax the interest paid to investors. |
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Term
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Definition
| Low denominations, nontransferable bonds issued by the United States government usually through payroll savings plan. |
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Term
| treasury notes (section 2) |
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Definition
| are United States government obligation with maturities of two to 10 years. |
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Term
| Treasury bonds (section 2) |
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Definition
| Have maturities ranging from more than 10 years as many as 30 years. |
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Term
| Treasury bills (section 2) |
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Definition
| Also known as T-bills, is a short term obligation with maturities of 13,26 or 52 weeks and a minimum denomination of one thousand. |
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Term
Individual Retirement Account(IRA)
(section 2) |
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Definition
| Long-term ,tax-sheltered time deposits that an employee can set up as a part of a retirement plan. |
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Term
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Definition
| TRA whose contributions are made after taxes so that no taxes are taken out of maturity. |
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Term
| Primary Market (section 2) |
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Definition
| A market where only the original issue can repurchase or redeem a financial assists. |
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Term
| secondary Market (section 2) |
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Definition
| Is a market in which existing financial assists can be resold to new owners. |
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Term
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Definition
| Are stocks that represent ownership shares in corporation. |
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Term
Efficient Market Hypothesis (EMH)
(section 3) |
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Definition
| The argument that stocks are always priced about right and that bargains are hard to find because they are followed closely by so many investors-is often used to help explain the prices of equities. |
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Term
| portfolio diversification (section 3) |
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Definition
| The practice of holding a large number of preferred stock so that increasing in some can offset unexplained declines in other. |
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Term
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Definition
| A person who buys or sells equities for clients. |
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Term
| securities exchange (section 3) |
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Definition
| a place where buyers and sellers meet to trade securities. |
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Term
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Definition
| Membership that allow access to the trading folder. |
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Term
| over-the-counter market (section 3) |
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Definition
| An electronic marketplace for securities that are not traded on an organized exchange. |
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Term
Dow-Jones Industrial Average (DJIA)
(section 3) |
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Definition
| Is the most popular and widely publicized manager of the stock market performance on the NYSE. |
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Term
Standard&poor's 500(S&p500)
(section 3) |
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Definition
| Uses the price changes of 500 representatives stocks as an indicator of overall market performance. |
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Term
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Definition
| Is a strong market with the price is moving for several months are years in a row. |
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Term
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Definition
| Is a "mean" market with the prices of equities moving sharply down for several months or year in a row. |
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Term
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Definition
| Is Market in which a transaction is made immediately at the prevailing price. |
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Term
futures contract
(section 3) |
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Definition
| An agreement to buy or sell at a specific date in the future at a predetermined price. |
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Term
futures market
(section 3) |
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Definition
| Are in the market place is in which future contracts, or "futures", are bought and sold. |
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Term
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Definition
| Are contracts that provide the right to purchase or sell commodities or financial assist at some point in the future at a price agreed upon today. |
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Term
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Definition
| The right to buy a shared of stock at a specific price sometime in the future. |
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Term
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Definition
| The right to sell a stock at a specific time in the future. |
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Term
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Definition
| The right to buy a share of stock at a specific price sometime in the future |
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Term
Option markets
(section 3) |
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Definition
| The right to sell share of stock at a specific price in the future. |
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Term
| Federal Reserve System ( ch11 section 3) |
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Definition
| or the Fed, as the nation's first true central bank. |
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Term
| Central bank ( ch11 section 3) |
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Definition
| is a bank that can lend to other banks in time of need. |
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Term
| Federal reserve note ( ch 11 section 3) |
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Definition
| paper currency issued by the Fed that eventually replaced all other types of federal currency-were added to the money supply. |
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Term
| run on the bank ( ch11 section 3) |
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Definition
| a rush by depositors to withdraw their funds from a bank before fail. |
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Term
| bank holiday ( ch 11 section 3) |
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Definition
| a brief period during which every bank in the country was required to close. |
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Term
| commercial banks ( ch 11 section 3) |
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Definition
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