Chapter
20
20
This is a type of money supply that includes paper money, savings accounts, & mutual funds
What is a M2
The name for a corporate certificate indicating that a person has lent money to a firm.
What is a bond
What is debt financing
Debts due in 1 year or less is called this on a balance sheet
What is current liabilities
This system consists of 12 Federal Reserve Banks
What is the federal reserve
This refers to the first public offering of a corporations stock
What is an IPO
Securing a 3 year bank loan is considered this
What is long term financing
This is a type of liquidity ratio
What is current ratio or Acid-test ratio
The formation of the Federal Reserve System was a result of this
What is the Bankng panic of 1907
This type of loan increases a firms debt and may adversley affect the financial communities perception of the firm.
What is a bond
This provides a summary of cash coming in and out of a firm
What is a statement of cash flows
This is a 6-step procedure that results in the analysis of major financial statements
What is an accounting cycle
The fed uses this to regulate money supply
What is discount rate
Trading previously issued securities from one investor to another takes place in this
What is the secondary market
This is a technical name for a checking account
What is demand deposit
Assets = Liabilities + Owners Equity
What is the fundamental accounting equation
When the Fed does this, banks have fewer funds available for lending
What is increasing reserve requirement
This type of security provides the owner the right to vote
What is common stock
This is considered a major investment in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights.
What is capital expenditures
This is a financial statment that shows a firms profit after costs, expenses and taxes
What is income statement