AHEAD EXAM SCRIPT GUARANTEED PASS.
◍ Compound Interest.Answer:Interest calculated on both the initial
principal and the accumulated interest from previous periods. In the
context of the time value of money, compound interest allows money
to grow at an increasing rate over time, as interest earned in each
period is added to the principal, and future interest is calculated on
this larger sum.
◍ Compounding.Answer:The process of calculating how a sum of
money grows over time as interest is added to both the initial
principal and accumulated interest. In the context of the time value of
money, compounding is used to determine the future value of a lump
sum or a series of payments.
◍ Compounding Frequency.Answer:The number of times interest is
applied to the principal balance of an investment or loan within a
specific period, typically a year. Common compounding frequencies
include annually, semiannually, quarterly, monthly, or daily. The
compounding frequency impacts how quickly an investment grows or
how much interest is accrued on a loan. The more frequent the
compounding, the greater the total amount of interest earned or paid,
as interest is calculated on previously accumulated interest as well as
the initial principal.
,◍ Consumer Confidence.Answer:A measure of how optimistic or
pessimistic consumers are about the economy's future performance,
influencing their spending and saving behaviors.
◍ Consumer Price Index (CPI).Answer:An index that measures the
average change in prices paid by consumers for a basket of goods and
services over time, used to gauge inflation.
◍ Consumer Spending.Answer:The total amount of money spent by
households on goods and services, a key driver of economic growth.
◍ Corporate Bonds.Answer:Bonds issued by corporations to fund
operations, expansions, or other activities, offering investors periodic
interest payments and repayment of principal at maturity.
◍ Corporate Social Responsibility (CSR).Answer:A company's
commitment to manage the social, environmental, and economic
effects of its operations responsibly and in line with public
expectations.
◍ Cost of Capital.Answer:The return (in percentage terms) that is
required by those who have provided the company capital.
◍ Cost of Debt.Answer:The effective interest rate that a company
must pay on its borrowed funds, representing the expense of raising
capital through loans or bonds. It is an essential component of a
company's total cost of capital, directly impacting profitability.
, ◍ Cost of Equity.Answer:The return that investors expect on their
invested capital, serving as the required rate of return for equity
holders. This rate is influenced by the risk associated with the
investment and is often estimated using market benchmarks.
◍ Cost of Goods Sold (COGS).Answer:The direct costs attributable
to the production of goods sold by the company.
◍ Cost-push Inflation.Answer:Inflation resulting from increased
production costs, such as wages and raw materials, leading to higher
prices for final goods and services.
◍ Coupon.Answer:The periodic interest payment made to
bondholders during the life of the bond.
◍ Coupon Rate.Answer:The annual interest rate paid by a bond issuer
on the bond's face value, expressed as a percentage.
◍ Cross-sectional Analysis.Answer:Comparing the financial ratios of
one company to the same financial ratios of another company.
◍ Current Assets.Answer:An asset or resource that is listed on the
balance sheet that can be converted into cash within one year.
◍ Current Liabilities.Answer:A liability that is due within one year of
the current date.