Funny Money
Acts as an intermediary between buyer and seller.
What is Medium of Exchange?
It's the rule by which other values are measured.
What is Unit of Account?
Economic resources.
What is Financial Capital?
If a firm's revenues are greater than costs, then those additional earnings are reinvested in equipment, structures, or research and development.
What is Profit?
A financial contract in which the borrower agrees to repay the amount that was borrowed and also a rate of interest over a period of time in the future.
What is Bond?
Refers to means of accessing financial services and conducting transactions on a mobile device. Instead of paying with cash, check, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods.
What is Mobile Payment?
Includes the most liquid forms of money, such as cash and checking-account funds
What is M1?
Banks serve as these between savers and borrowers and direct the flow of funds between the two groups.
What is Financial Intermediary?
These firms make financial investments in new companies that are still relatively small in size but have substantial growth potential. These firms father money from a variety of individual or institutional investors.
What is Venture Capital Firms?
Way to raise capital by selling ownership or equity; an investment for shareholders that creates returns through distribution of corporate profits as dividends or through gains in corporate value; traded through member brokers exchanges.
What is Stocks?
Consists of objects that have value in themselves, as well as value in their use as money.
What is Commodity Money?
The organization responsible for tracking the amounts of M1 and M2, and prepares a weekly release of information about the money supply.
What is The Federal Reserve System?
When a business owner uses his/her own money or seeks money from an angel investor or venture capital firm to get a business started.
What is Early-Stage Capital?
When a firm decides to sell stock, which in turn can be bought and sold by financial investors.
What is Public Company?
When a firm can make a direct payment to its shareholders.
What is Dividend?
A legal tender whose value is backed by the government that issue it.
What is Fiat Money?
Take place when the central bank sells or buys U.S Treasury bonds in order to influence the quantity of bank reserves and the level of interest rates.
What is Open Market Operations?
A financial investor might buy a share of stock and then later sell it for a higher price - the increase in value of the stock between when it is bought and sold.
What is Capital Gain?
Owned by the people who run it on a day-to-day basis.
What is Private Company?
The specific interest rate targeted in open market operations.
What is Federal Funds Rate?
Use the traditional concept of "money" but as an alternative to the established Federal Reserve System.
What is Virtual Currencies?
The percentage of each bank's deposits that is legally required to hold either as cash or in their vault or on deposit with the central bank. If banks are required to hold more in their reserves, they have less money to lend out.
What is Changing Reserve Requirements?
If this rate increases, the commercial banks will reduce their borrowing of reserves from the Fed, and instead call in loans to replace those reserves. Since fewer loans are available, the money supply falls, and market interest rates rise.
What is Changing the Discount Rate?
Most credible kinds are those based to blockchain technology that records, validates, and stores transaction information across a decentralized and distributed network of personal computers.
What is cryptocurrencies?
A firm's first sale of stock to the public
What is Initial Public Offering (IPO)?