+
Related Flashcards
Cards In This Set
| Front | Back |
|
Savings
|
Income not used for consumption
|
|
Investment
|
Use of income today that allows for a future benefit
|
|
Financial system
|
All the institutions that help transfer funds btw savers and investors
|
|
Financial asset
|
A claim on the property of the borrower
|
|
Financial market
|
Where buyers and sellers exchange financial assets
|
|
Financial intermediary
|
An institution that collects funds fr savers and invests the funds in financial assets
|
|
Capital market
|
Where long term financial assets are bought and sold
|
|
Money market
|
Where short term financial assets are bought and sold
|
|
Primary market
|
For buying financial assets directly fr the issuer
|
|
Secondary market
|
Where financial assets are resold
|
|
Mutual fund
|
An investment company that gathers money fr individual investors and purchases a range of financial assets
|
|
Investment objective
|
A financial goal used to determine if an investment is appropriate
|
|
Risk
|
The possiblity for loss on an investment
|
|
Return
|
A profit or loss made on an investment
|
|
Diversification
|
The practice of distributing investments among different financial assets
|
