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Flashcards in Quiz 6 Deck (60)
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1

What is not a financial asset ?

Financial Intermediaries

2

What is the main difference between a Finance Company and a Bank ?

A Finance Company doesn't have savings accounts

3

The main purpose of Life insurance is to provide financial protection for the family or other beneficiary of the uninsured

True

4

A Pension is guaranteed, no matter what job you work in, if you work at least 20 years

False

5

Define diversification

Splitting among different investments

6

Mutual funds

Pool the money of investors together and invest in different assets

7

Define Liquidity

Money in a account turns into cash

8

Complete the sentence: the higher the risk

The higher the potential reward

9

Example of financial intermediary

Mutual funds

10

Your book mentions four types of risk. Name one

Credit risk

11

My Maddox believes Blockchain might be better long-term investment than cryptocurrency. Why does he feel this way ?

Cryptocurrency can disappear one day

12

Blockchain

Way it encrypts the currency

13

Cryptocurrency

A form of digital currency

14

What does cryptocurrency use ?

Cryptography

15

Cryptography

Art of writing and solving codes

16

Consumerism

The protection or promotion of the interest of consumers

17

What are we suppose to do in stock ?

Buy low sell high

18

Financial intermediaries

Institution that helps channel funds from savers to borrowers

19

Financial intermediaries include

Banks, savings and loan associations, and credit unions
Finance companies
Mutual funds
Life insurance companies
Pension funds

20

Parts of a check

Routing number
Account number
Check number
Memo line
Sign line
Pay to line

21

Endorsing

Signing of a check

22

What happens when the bank gets your name wrong on the check ?

You can still sign it off since the bank made the mistake

23

Assets

Something you own that has value

24

FDIC

Funds that are protected by the government

25

Finance company

Make a loan to consumers and small business

26

Principal in deposit

The amount of money you deposit

27

Stock broker

Buys part of the company
Stock
Options
Commodities

28

Capital

Money

29

Issue corporate bond

Government issue bonds

30

Privately own

Own it yourself