Types of Financial Institutions
What type of institution accepts deposits and provides loans?
Bank
What is the money kept in a bank for safekeeping called?
Deposit
What system facilitates electronic money transfers between individuals and businesses?
Payment System
What is a share of ownership in a company called?
Stock
What term represents the total value of goods and services produced in a country?
GDP
What member-owned financial institution provides services similar to banks?
Credit Union
What is the amount of money borrowed that must be repaid with interest?
Loan
What marketplace allows people to buy and sell shares of companies?
Stock Market
What financial instrument represents a loan to a company or government?
Bond
What is the general increase in prices over time called?
Inflation
Which institution helps companies raise capital by underwriting securities?
Investment Bank
What is the cost of borrowing money, usually expressed as a percentage?
Interest Rate
What decentralized digital ledger technology is used for secure transactions?
Blockchain
What term describes a portion of a company's profits paid to shareholders?
Dividend
What is the strategy used by central banks to control money supply and interest rates?
Monetary Policy
What financial service provides small loans to low-income individuals?
Microfinance
What term refers to how easily an asset can be converted into cash?
Liquidity
What financial institution ensures that trades are completed correctly between buyers and sellers?
Clearinghouse
What is a pooled investment fund that spreads risk across multiple assets?
Mutual Fund
What government policy involves taxation and public spending to influence the economy?
Fiscal Policy
What type of investment fund uses high-risk strategies to maximize returns?
Hedge Fund
What test measures a bank’s ability to handle financial crises?
Stress Test
What regulatory body monitors and enforces financial market rules?
Securities Regulator
What financial contracts derive their value from underlying assets?
Derivatives
What is the term for a country’s total outstanding debt to creditors?
Sovereign Debt