Flashcards in Quiz 6 Deck (60)
What is not a financial asset ?
What is the main difference between a Finance Company and a Bank ?
A Finance Company doesn't have savings accounts
The main purpose of Life insurance is to provide financial protection for the family or other beneficiary of the uninsured
A Pension is guaranteed, no matter what job you work in, if you work at least 20 years
Splitting among different investments
Pool the money of investors together and invest in different assets
Money in a account turns into cash
Complete the sentence: the higher the risk
The higher the potential reward
Example of financial intermediary
Your book mentions four types of risk. Name one
My Maddox believes Blockchain might be better long-term investment than cryptocurrency. Why does he feel this way ?
Cryptocurrency can disappear one day
Way it encrypts the currency
A form of digital currency
What does cryptocurrency use ?
Art of writing and solving codes
The protection or promotion of the interest of consumers
What are we suppose to do in stock ?
Buy low sell high
Institution that helps channel funds from savers to borrowers
Financial intermediaries include
Banks, savings and loan associations, and credit unions
Life insurance companies
Parts of a check
Pay to line
Signing of a check
What happens when the bank gets your name wrong on the check ?
You can still sign it off since the bank made the mistake
Something you own that has value
Funds that are protected by the government
Make a loan to consumers and small business
Principal in deposit
The amount of money you deposit
Buys part of the company
Issue corporate bond
Government issue bonds