Econ 101
A period of declining GDP for at least two consecutive quarters.
What is a recession?
A fund that tracks the S&P 500 is this type of investment.
What is an index fund?
This billionaire is known for owning Berkshire Hathaway.
Who is Warren Buffett?
When stock prices are generally going up, it’s called this type of market.
What is a bull market?
Before buying something big, you should create this written plan for how you’ll spend and save your money.
What is a budget?
When the government spends more than it collects in revenue.
What is a budget deficit?
This principle means “don’t put all your eggs in one basket.”
What is diversification?
The company that went from an online bookstore to a trillion-dollar empire.
What is Amazon?
When the stock market drops 20% or more, it’s called this.
What is a bear market?
This three-digit number shows how trustworthy you are when borrowing money.
What is a credit score?
When demand increases and supply can’t keep up, prices rise — known as this type of inflation.
What is demand-pull inflation?
The difference between the buying and selling price of a stock is called this.
What is the bid-ask spread?
Jamie Dimon is the longtime CEO of this financial giant, the largest bank in the U.S.
What is JPMorgan Chase?
This famous 2008 company collapse became a symbol of the financial crisis.
What is Lehman Brothers?
When prices rise but your income doesn’t, your money’s purchasing power goes down — this is caused by what?
What is inflation?
GDP doesn’t account for this important factor that measures citizens’ happiness or well-being.
What is quality of life?
This type of stock pays part of a company’s profits to shareholders, usually quarterly.
What is a dividend stock (or dividend-paying stock)?
This asset management giant, founded by Larry Fink, controls over $10 trillion in assets — more than the GDP of many countries.
What is BlackRock?
This index tracks 30 major U.S. companies and is one of the oldest in the world.
What is the Dow Jones Industrial Average?
When your investment profits start earning profits of their own, this powerful snowball effect is called what?
What is compound interest?
The opportunity cost of holding money instead of investing it is called this.
What is the interest rate?
When you borrow money to buy investments, you’re using this.
What is leverage?
This person founded the Medallion Fund and created the field of "quantitative trading".
Who is Jim Simons?
Normally, investors try to “buy low and sell high.” But when you sell high first and plan to buy low later, you’re doing this.
What is short selling (or “going short”)?
This U.S. institution controls inflation, interest rates, and the amount of pain in your wallet — all from one boardroom.
What is the Federal Reserve?