odette midterm
prospectus - ANS-document issued to possible buyers of a stocks and bonds outlining the
financial condition of the company issuing those securities
Bull Market - ANS-a period of rising stock prices
bear market - ANS-A steady drop in the stock market over a period of time
buy and hold - ANS-buy stocks and then hold them for the long run, regardless of what prices
do in the short run
tax deferral - ANS-a temporary delay in the payment of income taxes
primary market - ANS-the market in which new securities are originally sold to investors
secondary market - ANS-market for reselling financial assets
rate of return - ANS-the percentage of increase in the value of your savings from earned interest
stockbroker - ANS-a person who links buyers and sellers of stock
S&P 500 - ANS-index that shows the price changes of 500 different stocks
Character, Capacity, Capital, Collateral, Conditions - ANS-what are the five c's of credit?
fiscal policy - ANS-Government policy that attempts to manage the economy by controlling
taxing and spending.
monetary policy - ANS-Government policy that attempts to manage the economy by controlling
the money supply and thus interest rates.
money multiplier - ANS-the amount of money the banking system generates with each dollar of
reserves
Laffer Curve - ANS-shows the relationship between the size of the tax and tax revenue
discount rate - ANS-The interest rate on the loans that the Fed makes to banks
Keynesian economics - ANS-a form of demand-side economics that encourages government
action to increase or decrease demand and output
, open market operations - ANS-the buying and selling of government securities to alter the
supply of money
Productions Possibilities Curve - ANS-All the possible combinations that a producer may
produce of two distinct products
supply - ANS-The amount of goods available
demand - ANS-the desire to own something and the ability to pay for it
Supply-side policy - ANS-the use of tax incentives, (de)regulation, and other mechanisms to
increase the ability and willingness to produce goods and services
quantitative easing - ANS-the targeted use of open market operations in which the central bank
buys securities specifically targeted in certain markets
World Trade Organization - ANS-an international organization based in Geneva that monitors
and enforces rules governing global trade
North American Free Trade Agreement (NAFTA) - ANS-Agreement that created a free-trade
area among the United States, Canada, and Mexico.
fractional reserve system - ANS-banks keep a fraction of deposits as reserves and use the rest
to make loans
prime rate - ANS-the lowest rate of interest at which money may be borrowed commercially.
easy money policy - ANS-monetary policy that increases the money supply
Federal Insurance Contributions Act (FICA) - ANS-A federal system of old-age, survivors,
disability and health-care insurance (Medicare) which requires employers to withhold (or
transfer) wages from employees' paychecks and deposit that money in designated accounts.
debt ceiling - ANS-total amount of money the federal government is allowed to borrow
real interest rate - ANS-the interest rate corrected for the effects of inflation
payroll tax - ANS-a tax that removes money directly from workers' paychecks
marginal tax rate - ANS-the extra taxes paid on an additional dollar of income
progressive tax - ANS-A tax for which the percentage of income paid in taxes increases as
income increases
prospectus - ANS-document issued to possible buyers of a stocks and bonds outlining the
financial condition of the company issuing those securities
Bull Market - ANS-a period of rising stock prices
bear market - ANS-A steady drop in the stock market over a period of time
buy and hold - ANS-buy stocks and then hold them for the long run, regardless of what prices
do in the short run
tax deferral - ANS-a temporary delay in the payment of income taxes
primary market - ANS-the market in which new securities are originally sold to investors
secondary market - ANS-market for reselling financial assets
rate of return - ANS-the percentage of increase in the value of your savings from earned interest
stockbroker - ANS-a person who links buyers and sellers of stock
S&P 500 - ANS-index that shows the price changes of 500 different stocks
Character, Capacity, Capital, Collateral, Conditions - ANS-what are the five c's of credit?
fiscal policy - ANS-Government policy that attempts to manage the economy by controlling
taxing and spending.
monetary policy - ANS-Government policy that attempts to manage the economy by controlling
the money supply and thus interest rates.
money multiplier - ANS-the amount of money the banking system generates with each dollar of
reserves
Laffer Curve - ANS-shows the relationship between the size of the tax and tax revenue
discount rate - ANS-The interest rate on the loans that the Fed makes to banks
Keynesian economics - ANS-a form of demand-side economics that encourages government
action to increase or decrease demand and output
, open market operations - ANS-the buying and selling of government securities to alter the
supply of money
Productions Possibilities Curve - ANS-All the possible combinations that a producer may
produce of two distinct products
supply - ANS-The amount of goods available
demand - ANS-the desire to own something and the ability to pay for it
Supply-side policy - ANS-the use of tax incentives, (de)regulation, and other mechanisms to
increase the ability and willingness to produce goods and services
quantitative easing - ANS-the targeted use of open market operations in which the central bank
buys securities specifically targeted in certain markets
World Trade Organization - ANS-an international organization based in Geneva that monitors
and enforces rules governing global trade
North American Free Trade Agreement (NAFTA) - ANS-Agreement that created a free-trade
area among the United States, Canada, and Mexico.
fractional reserve system - ANS-banks keep a fraction of deposits as reserves and use the rest
to make loans
prime rate - ANS-the lowest rate of interest at which money may be borrowed commercially.
easy money policy - ANS-monetary policy that increases the money supply
Federal Insurance Contributions Act (FICA) - ANS-A federal system of old-age, survivors,
disability and health-care insurance (Medicare) which requires employers to withhold (or
transfer) wages from employees' paychecks and deposit that money in designated accounts.
debt ceiling - ANS-total amount of money the federal government is allowed to borrow
real interest rate - ANS-the interest rate corrected for the effects of inflation
payroll tax - ANS-a tax that removes money directly from workers' paychecks
marginal tax rate - ANS-the extra taxes paid on an additional dollar of income
progressive tax - ANS-A tax for which the percentage of income paid in taxes increases as
income increases
