The direct exchange of one set of goods for another, rather than using currency.
What is bartering?
100
The Federal Reserve
What is the central bank of the United States?
100
The ability to convert an asset into cash.
What is liquidity?
100
Treasury bonds, bills, and notes are sold by this entity.
What is the U.S. government?
100
The benefit to a shareholder when the selling price of a share of stock is higher than the purchase price.
What is a capital gain?
200
The necessary characteristic of money that means it can withstand the wear and tear of being used repeatedly.
What is durable?
200
The group that oversees the central bank of the U.S.
What is the Board of Governors?
200
The strategy of spreading out investments to reduce risk.
What is diversification?
200
The stated rate of return on a bond.
What is the coupon rate?
200
A payout of corporate profits to shareholders, usually either quarterly or annually
What is a dividend?
300
Money that has value because the government has decreed it to be an acceptable form of payment is called this.
What is fiat money?
300
The number of federal reserve districts in the U.S.
What is 12?
300
Pools the savings of many individuals and invests the money in a variety of stocks, bonds, and other financial assets, so that the investment is less risky for people.
What is a mutual fund?
300
The direction a bond price will move if the interest rate on similar bonds increases.
What is down, or decrease?
300
When you hold a share of stock in a company, you have a share of this.
What is ownership?
400
The banking system in which banks keep only a fraction of deposits on hand and lend out the rest.
What is fractional reserve banking?
400
This body makes key monetary policy decisions about interest rates and the money supply.
What is the Federal Open Market Committee?
400
Institution that help channel funds from savers to borrowers.
What is a financial intermediary?
400
The length of term of a bond, until the bondholder is fully repaid.
What is its maturity?
400
A stock that pays little to no dividends so that the issuing company can reinvest earnings, hopefully to benefit the shareholders.
What is a growth stock?
500
The measure of the money supply that includes demand deposits AND near money assets such as savings account deposits.
What is M2?
500
The rate that the central bank charges on emergency loans to commercial bank?
What is the discount rate?
500
An investment report that, by law, must be given to potential investors before they contribute any money.
What is a prospectus?
500
Where financial assets can be resold
What is the secondary market?
500
The two major stock exchanges in the U.S.
What are the New York Stock Exchange and the NASDAQ?