Money
Coins and paper bills used as money.
What is currency?
The paper currency issued by the North during the Civil War.
What are greenbacks?
A card used to withdraw money from a checking account.
What is a debit card?
The practice of spreading out investments to reduce risk.
What is diversification?
The stock market collapse in 1929.
What is the Great Crash?
What are the characteristics of money?
Widespread panic in which great numbers of people try to redeem their paper money.
What is a bank run?
The price paid for the use of borrowed money.
What is interest?
The time in which a payment to a bondholder is due.
What is maturity?
Practice of making high-risk investments with borrowed money in the hopes of getting a big return.
What is speculation?
Type of money that has value because the government has decreed that it is an acceptable way to pay debts.
What is Fiat?
The nation's central banking system; controls the amount of currency in circulation.
What is the Federal Reserve Systm?
The failure to pay back a loan.
What is a default?
A type of bond that is lower-rated and potentially higher-paying.
What is a junk bond?
When an investor sells a stock at a price lower than the purchase price.
What is a capital loss?
I will also accept: What is a risk of investing?
What is a store of value?
The government agency that insures customer deposits if a bank fails.
The money that people can gain access to quickly. The part of the money supply with liquidity.
What is M1?
An investment report to potential investors.
What is a prospectus?
A specific American stock market that provides over-the-counter securities, including for many big tech companies.
What is the Nasdaq?
Use of Money: provides a means for comparing the values of goods and services.
What is a unit of account?
- Store money from taxes - Helped government carry out powers to tax, borrow money, and regulate commerce - Issue representative money - Ensure state-chartered banks held enough gold/silver in reserve
What are the functions of the First Banks of the US?
What is fractional reserve banking?
Type of bond issued by a state and local government to finance improvements to the community.
What is a municipal bond?
The option to buy shares of stock at a specified time in the future.
What is a call option?