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Sources of Capital
Vocab Stuffs
32
Economics
12th Grade
03/29/2012

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Term
disposable income
Definition
money available after taxes have been paid
Term
balance
Definition
the amount of money in an account
Term
liquidity
Definition
assets such as an account that can be converted to cash with little or no cost
Term
time deposits
Definition
requires the saver to leave money in the account for a specific amount of time. Has higher interest rate than normal savings account
Term
maturity
Definition
length of time that money must be deposited
Term
savings rate
Definition
percentage of people's disposable income
Term
investment
Definition
exchanging money for something of value with the expectation of earning a profit
Term
budget
Definition
spending and savings plan
Term
fixed expenses
Definition
payments that remain constant
Term
Flexible expenses
Definition
payments that vary from month to month
Term
diversification
Definition
a person chooses a variety of investments, CDs, Stocks, Bonds, etc
Term
real investment
Definition
when investors use money to create a new capital good
Term
capital accumulation
Definition
the expansion of the capital goods existing in an economy
Term
infrastructrue
Definition
transportation systems, public systems, etc. The things that make the economy possible, building blocks.
Term
venture capital
Definition
Money invested in entrepreneurial enterprises
Term
capital gain
Definition
difference between higher selling price and lower buying price
Term
capital lost
Definition
difference between lower selling price and higher buying price
Term
stock split
Definition
the act of making one share two... cutting the price in half
Term
brokers
Definition
link buyers and sellers of stock
Term
investment bank
Definition
buys or sells blocks of stocks
Term
bull market
Definition
when the Dow steadily rises over a period of time
Term
bear market
Definition
when the Dow falls for a period of time
Term
yields
Definition
interest on money owed to a bondholder
Term
futures
Definition
various types of products that replace stock
Term
prospectus
Definition
fact sheet containing data on the company's finances
Term
installment
Definition
purchasing over time in equal amounts
Term
credit rating
Definition
estimation of the probability of repayment.
Term
credit bureau
Definition
credit reporting service
Term
finance charge
Definition
the total cost of credit expressed in dollars and cents
Term
annual percentage rate
Definition
total cost of credit expressed as a yearly percentage
Term
usury
Definition
charging interest above the legal limit
Term
bankruptcy
Definition
legal declaration of inability to pay debts
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