Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Civics Honors > Final Exam Study Guide > Flashcards

Final Exam Study Guide Flashcards

(83 cards)

Start Studying
1
Q

Eliminates the need to “time” the market when making an investment decision

A

Dollar cost averaging

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The amount of money that you are paid for allowing a financial institution to use your money

A

Earned interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Interest earned on interest

A

Compound interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The most important personal finance principle

A

Pay yourself first

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Appropriate ways for you to invest your money for the long term

A

Stocks, bonds, mutual funds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Relationship between time, money, and the rate of interest

A

Time value of money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Appropriate ways for you to save your money

A

Bank savings, money markets, bank cd’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Personal finance principle based upon the adage about not putting all your eggs in one basket

A

Diversification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Helps you achieve your intermediate and long-term financial goals

A

Investing money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Helps you achieve your short-term financial goals and to prepare for an unforeseen financial emergency

A

Saving money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Largest corporation in the world due to its market capitalization

A

Apple

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

An example of a publicly traded corporation

A

McDonald’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

An example of a privately held corporation

A

Chick-Fil-A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Found by multiplying the total number of stock shares that a corporation has issued with the current price per share

A

Market capitalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

20% of all businesses in the U.S. are classified as this type of business organization; account for 90% of all the products sold and services provided

A

Corporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Represents ownership in a corporation and a proportional share in the assets and profits of the issuing corporation

A

Stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

This stock exchange is one of the largest in the world and uses a combination of human floor traders and computers

A

NYSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Tracks the performance of 30 of the largest and most widely held companies in the U.S.; most widely followed stock index in the world

A

DJIA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Second most widely followed stock performance indicator in the world

A

S&P 500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Completely computerized stock exchange

A

NASDAQ

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Stocks of companies whose earnings are expected to grow at an above-average rate

A

Growth stocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Pet Smart and Buffalo Wild Wings are examples of this type of stock

A

Mid-Cap stocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Stocks that appreciate in value quickly when economic growth is strong and fall rapidly when economic growth is declining

A

Cyclical stocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Stocks that remain stable during declines in the economy

A

Defensive stocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Stocks of the most well established and financially sound companies
Blue-Chip stocks
26
Stocks of companies that pay regular and steadily increasing dividends
Income stocks
27
The real value of this type of investment is dependent upon the actual rarity of the item and the willingness of individuals to purchase it at the time of sale
Collectibles
28
Most common type of investment found in 401K's, 403B's, and Individual Retirement Accounts; two basic categories are actively managed and passively managed
Mutual funds
29
Type of investment that focuses upon the acquisition of property for the purposes of generating long term rental income or capital gains through the sale of the property
Real estate
30
Similar in structure to an I.O.U.; issuer promises payment over a specified period of time at an agreed upon rate of interest
Bonds
31
Current price of a single share of a company's stock
Stock price
32
Portion of a company's profit that is allocated to each outstanding share of stock
Earnings per share
33
Unique series of letters assigned to a security for trading purposes
Stock symbol
34
Helps an investor determine how expensive or inexpensive a stock is based upon its current price and its earnings per share
PE ratio
35
Helps an investor determine a stock's value while taking into account earnings growth
PEG ratio
36
The total expected dividend payment from an investment
Dividend rate
37
Shows how much a company pays out in dividends relative to its share price
Dividend yield
38
Lowest price that a stock has reached during the last year
52 Week low
39
Highest price that a stock has reached during the last year
52 Week high
40
Next best alternative to a chosen activity
Opportunity cost
41
Land, labor, and capital
Factors of production
42
Are provided by lawyers, engineers, doctors, educators, etc.
Services
43
Market structure where there is a single producer of a good or provider of a service
Monolopy
44
Benefits consumers by providing them with a variety of goods at reasonable prices and producers by encouraging them to be as efficient as possible during the production process
Competition
45
Examples include food, clothing, shelter, and water
Needs
46
The fundamental problem within the study of economics
Scarcity
47
Three basic economic questions are answered by following established traditions, customs, and cultural norms
Traditional system
48
All of the potential things that could have been chosen but weren't
Trade-offs
49
Focuses upon large economic issues like inflation and unemployment
Macroeconomics
50
Market structure where there are many producers selling identical products; are no barriers to either enter or exit the market
Perfect competition
51
Tangible and physical objects that can be bought, sold, or traded
Goods
52
Three basic economic questions are answered by the government
Command system
53
Study of how individuals and nations allocate their scarce resources for the fulfillment of seemingly unlimited wants and needs
Economics
54
Market structure that is dominated by a few large firms; some control over price and are significant barriers to both entry and exit
Oligopoly
55
Focuses upon economic decision making at the individual person and individual business level
Microeconomics
56
Three basic economic questions are answered through the interaction of supply and demand
Market system
57
Market structure that has many firms with some product differentiation and some control over price; minimal restrictions on entry and exit into the market
Monopolistic competition
58
Examples include a new iPhone X, Netflix subscription, and a diamond encrusted popsocket
Wants
59
Three basic economic questions are answered through a combination of the interaction of supply and demand and regulations and economic intervention by the government
Mixed System
60
Occurs when the quantity demanded is greater than the quantity supplied
Shortage
61
Scarcity of these leads to the necessity of economic decision making
Resources
62
Market clearing occurs at this point
Equilibrium
63
Two categories of this are physical and financial
Capital
64
Amount that producers are willing and able to produce
Supply
65
Occurs when the quantity supplied is greater than the quantity demanded
Surplus
66
Amount that consumers are willing and able to purchase
Demand
67
Term that is synonymous with workers
Labor
68
Factor of production that contains the natural resources necessary to produce goods and provide services
Land
69
Includes entitlement programs such as social security, Medicare, and Medicaid
Mandatory spending items
70
Total amount of money that is owed by the U.S.; currently in excess of $21 trillion
National debt
71
Program established in 1935 as a way to provide benefits to retirees, dependent children, and the disabled; single largest annual budgetary expenditure
Social security
72
Sales tax; have a greater economic impact on individuals that make less money
Regressive
73
Includes spending on environmental protection, education, highway construction, food safety inspections, and flu vaccines
Discretionary spending items
74
Single largest annual non-entitlement budget expenditure
Defense spending
75
Single largest source of annual federal revenue
Personal income taxes
76
Personal income taxes; have a greater economic impact on individuals that make more money
Progressive
77
Type of rate charged by the Fed when member banks borrow money
Discount rate
78
The current Chair of the Federal Reserve
Jerome Powell
79
Type of government security that has a period of maturity that is less than one year
Treasury bills
80
Type of government security that has a period of maturity that is greater than one year
Treasury notes
81
Buying or selling of government securities initiated by the Federal Reserve
Open market operations
82
Percentage of deposits that the Federal Reserve requires its member banks keep at the Fed
Reserve requirement
83
Another name for the payroll tax that funds both social security and Medicare
FICA

Civics Honors (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions