Ch9 Flashcards
(32 cards)
Money available after taxes have been paid
Disposable income
The amount of money in the account
Balance
Assists such as an account can be converted into cash with little or no loss in interest payments
Liquidity
Requires the saver to leave money in the account for a specific amount of time
Time deposits
Length of time that money must be deposited
Maturity
The percentage of people’s disposable income that is not spent
Savings rate
People exchange their money for something of value with the expectation of earning a profit on it in the future
Investment
Spending and savings plan
Budget
Those payments that remain constant from month to month
Fixed expenses
Vary from month to month
Flexible expenses
Means that a person chooses a variety of investments
Diversification
When investors use money to create a new capital good they use
Real investment
The expansion of the capital goods existing in an economy
Capital accumulation
Transportation systems including roads, bridges, harbors, and airports and public facilities like universities
Infrastructure
Money invested in entrepreneurial enterprises is called
Venture capital
The difference between the higher selling price and the lower original purchase price is
Capital gain
An investor who sells a stock at a price lower than the purchase price incurs a
Capital loss
An action by a corporation to divide its stock into a larger number of shares
Stock split
Link buyers and sellers of stock
Brokers
Buys and sells large blocks of stock
Investment bank
When the Dow steadily rises over a period of time
Bull market
Dow average falls for a period of time
Bear market
Interest on money owed to a bond holder
Yield
Agricultural products
Futures
