TEXES BUSINESS AND FINANCE 6-12 (276) DOMAIN I-
V
National Association of Securities Dealers Automated Quotations (NASDAQ) - Answers
:is the second largest stock exchange in the world by market capitalization. It is a
dealer's market.
New York Stock Exchange (NYSE) - Answers :is the largest stock exchange in the
world measured by market capitalization. It is an auction market.
Dow Jones Industrial Average (DJIA) "DOW" - Answers :is a stock market index that
indicates the value of 30 large, publicly owned companies based in the United States.
S&P 500 - Answers :is an American stock market index based on the market
capitalizations of 500 large companies having common stock listed on the NYSE,
NASDAQ, or the Cboe BZX Exchange.
Marrakesh Agreement - Answers :was an agreement signed in Marrakesh, Morocco, by
124 nations on 15 April 1994, marking the culmination of the 8-year-long Uruguay
Round and established the World Trade Organization (WTO).
Uruguay Round - Answers :was the 8th round of multilateral trade negotiations (MTN),
that led to the creation of the World Trade Organization (WTO).
World Trade Organization (WTO) - Answers :Started by Marrakech Agreement. / is an
intergovernmental organization that is concerned with the regulation of international
trade between nations. It provides a forum for negotiations and for settling trade
disputes.
North American Free Trade Agreement (NAFTA) - Answers :is a trilateral trade
agreement signed by Canada, Mexico, and the United States.
United Nation (UN) - Answers :An intergovernmental organization that was tasked to
maintain peace and security among nations.
World Bank - Answers :is a UN agency created to assist developing nations by loans
guaranteed by member nations. Its goal is the reduction of poverty.
European Union - Answers :is a political and economic union of 28 member states that
are located primarily in Europe. It has internal single market system policies that aim to
ensure the free movement of people, goods, services and capital within the internal
market.
Par value - Answers :value assigned to a share of stock and printed on the stock
certificate
,Security Exchange - Answers :A marketplace where member brokers who represent
investors meet to buy and sell securities.
Common Stock - Answers :Represents ownership in a publicly held company which
entitles owners to dividends (if declared by the company's Board of Directors), voting
rights on matters affecting the company, and in the elections of Boards members.
Bull market - Answers :Stock market experiences a general rise in prices and stock
trading volume for shares over a period of time.
Bear market - Answers :Stock market that experiences a general decline in prices of
stock. Not all stocks experience a decline in value, but most do.
Speculation market - Answers :is the purchase of an asset (commodities, stocks) with
the hope that it will become more valuable in the near future. People in this business
are usually buying on margin accounts and engaging in very risky financial transactions
in an attempt to profit from short term fluctuations in the market value of a financial
instrument.
stock split - Answers :A division of shares of a company into a larger number of shares.
A 2 for 1 split allows a shareholder to double the number of shares but worth one half of
their previous value.
Risk - Answers :expose to a chance of loss or damage
Sarbanes-oxley act 2002 - Answers :requires that the CEO and CFO of large
companies that have publicly traded stock personally certify that financial reports made
to the SEC comply with SEC rules and that info in the reports are accurate.
Commercial finance companies - Answers :purchase the accounts receivable of a
business at a discount but seller pays if default. Make loans on business inventory or
machinery and equipment. Charge higher rates than commercial banks due to higher
risk involved.
Social marketing orientation - Answers :- the idea that an organization exists not only to
satisfy customer wants and needs and to meet organizational objectives but also to
preserve or enhance individuals' and society's long-term best interests
Sales orientation - Answers :the ideas that people will buy more goods and services if
aggressive sales techniques are used and that high sales result in high profits
Command economy - Answers :An economic system in which the government controls
a country's economy.
,Lines of credit - Answers :Agreements made by a bank to lend money at a stated
interest rate whenever the owner needs it. A fee is charged for the privilege whether the
money is used or not, and interest is charged on any money that is used.
Income elasticity of demand - Answers :The responsiveness of demand to change in
income
Competitive pricing - Answers :Pricing strategies based on prices charged by rivals.
Equilibrium - Answers :The price when the supply and demand in the economy are
equal.
Price elastic demand - Answers :A change in price results in a greater change in
demand.
Price elasticity of demand - Answers :The responsiveness of demand to a change in
price.
Price inelastic demand - Answers :A change in price results in a proportionately smaller
change in demand.
Income elastic demand - Answers :The percentage change in demand for a product is
proportionately greater than the percentage change in income
Income elasticity of demand - Answers :The responsiveness of demand to change in
income.
Income inelastic demand - Answers :Where the percentage change in demand is
proportionately less than the percentage change in income.
Predatory pricing - Answers :Setting a low price to force other rivals out of the business.
Penetration pricing - Answers :Setting a low price when launching a new product in
order to get established in the market.
Psychological pricing - Answers :Setting the price just below a round figure.
Skimming - Answers :Setting a high price initially and then lowering it later.
Sponsorship - Answers :Making a financial contribution to an event in return for
publicity.
Viral marketing - Answers :Any strategy that encourages people to pass on messages
to others about a product or a business electronically.
, Distribution channel - Answers :The route taken by a product from the producer to the
customer.
Distribution - Answers :The delivery of goods from the producer to the consumer.
Ergonomics - Answers :The study of how people interact with their environment and the
equipment they use often in the
workplace.
Ethical sourcing - Answers :Using materials, components and services from suppliers
that respect the environment, treat their workforce well and generally trade with
integrity.
Waste minimization - Answers :Reducing the quantity of resources that are discarded in
the production process.
M1 Money supply - Answers :Currency, coins, checking accounts demand deposits.
M2 Money Supply - Answers :M1 plus balances in most savings accounts and money
market mutual funds.
M3 Money Supply - Answers :Money includes M2 and long term purchase agreement.
5 Cs of Credit - Answers :Character, Capacity, Capital, Collateral, Conditions.
Federal Reserve System - Answers :Central banking system of the US - created in 1913
by the Federal Reserve Act - quasi public system.
Federal Open Market Committee (FOMC) - Answers :A committee within the FED that
designs and executes the particulars of monetary policy/ 12 members.
Structural unemployment - Answers :unemployment that occurs because individuals
lack skills valued by employers
Frictional unemployment - Answers :unemployment that occurs when people take time
to find a job
Cyclical unemployment - Answers :unemployment caused by economic downturns, the
business cycle during recession period.
Seasonal unemployment - Answers :state of being out of work because of the time of
year.
Creditworthiness - Answers :is the key determinant of how likely it is that the loan will be
repaid.
V
National Association of Securities Dealers Automated Quotations (NASDAQ) - Answers
:is the second largest stock exchange in the world by market capitalization. It is a
dealer's market.
New York Stock Exchange (NYSE) - Answers :is the largest stock exchange in the
world measured by market capitalization. It is an auction market.
Dow Jones Industrial Average (DJIA) "DOW" - Answers :is a stock market index that
indicates the value of 30 large, publicly owned companies based in the United States.
S&P 500 - Answers :is an American stock market index based on the market
capitalizations of 500 large companies having common stock listed on the NYSE,
NASDAQ, or the Cboe BZX Exchange.
Marrakesh Agreement - Answers :was an agreement signed in Marrakesh, Morocco, by
124 nations on 15 April 1994, marking the culmination of the 8-year-long Uruguay
Round and established the World Trade Organization (WTO).
Uruguay Round - Answers :was the 8th round of multilateral trade negotiations (MTN),
that led to the creation of the World Trade Organization (WTO).
World Trade Organization (WTO) - Answers :Started by Marrakech Agreement. / is an
intergovernmental organization that is concerned with the regulation of international
trade between nations. It provides a forum for negotiations and for settling trade
disputes.
North American Free Trade Agreement (NAFTA) - Answers :is a trilateral trade
agreement signed by Canada, Mexico, and the United States.
United Nation (UN) - Answers :An intergovernmental organization that was tasked to
maintain peace and security among nations.
World Bank - Answers :is a UN agency created to assist developing nations by loans
guaranteed by member nations. Its goal is the reduction of poverty.
European Union - Answers :is a political and economic union of 28 member states that
are located primarily in Europe. It has internal single market system policies that aim to
ensure the free movement of people, goods, services and capital within the internal
market.
Par value - Answers :value assigned to a share of stock and printed on the stock
certificate
,Security Exchange - Answers :A marketplace where member brokers who represent
investors meet to buy and sell securities.
Common Stock - Answers :Represents ownership in a publicly held company which
entitles owners to dividends (if declared by the company's Board of Directors), voting
rights on matters affecting the company, and in the elections of Boards members.
Bull market - Answers :Stock market experiences a general rise in prices and stock
trading volume for shares over a period of time.
Bear market - Answers :Stock market that experiences a general decline in prices of
stock. Not all stocks experience a decline in value, but most do.
Speculation market - Answers :is the purchase of an asset (commodities, stocks) with
the hope that it will become more valuable in the near future. People in this business
are usually buying on margin accounts and engaging in very risky financial transactions
in an attempt to profit from short term fluctuations in the market value of a financial
instrument.
stock split - Answers :A division of shares of a company into a larger number of shares.
A 2 for 1 split allows a shareholder to double the number of shares but worth one half of
their previous value.
Risk - Answers :expose to a chance of loss or damage
Sarbanes-oxley act 2002 - Answers :requires that the CEO and CFO of large
companies that have publicly traded stock personally certify that financial reports made
to the SEC comply with SEC rules and that info in the reports are accurate.
Commercial finance companies - Answers :purchase the accounts receivable of a
business at a discount but seller pays if default. Make loans on business inventory or
machinery and equipment. Charge higher rates than commercial banks due to higher
risk involved.
Social marketing orientation - Answers :- the idea that an organization exists not only to
satisfy customer wants and needs and to meet organizational objectives but also to
preserve or enhance individuals' and society's long-term best interests
Sales orientation - Answers :the ideas that people will buy more goods and services if
aggressive sales techniques are used and that high sales result in high profits
Command economy - Answers :An economic system in which the government controls
a country's economy.
,Lines of credit - Answers :Agreements made by a bank to lend money at a stated
interest rate whenever the owner needs it. A fee is charged for the privilege whether the
money is used or not, and interest is charged on any money that is used.
Income elasticity of demand - Answers :The responsiveness of demand to change in
income
Competitive pricing - Answers :Pricing strategies based on prices charged by rivals.
Equilibrium - Answers :The price when the supply and demand in the economy are
equal.
Price elastic demand - Answers :A change in price results in a greater change in
demand.
Price elasticity of demand - Answers :The responsiveness of demand to a change in
price.
Price inelastic demand - Answers :A change in price results in a proportionately smaller
change in demand.
Income elastic demand - Answers :The percentage change in demand for a product is
proportionately greater than the percentage change in income
Income elasticity of demand - Answers :The responsiveness of demand to change in
income.
Income inelastic demand - Answers :Where the percentage change in demand is
proportionately less than the percentage change in income.
Predatory pricing - Answers :Setting a low price to force other rivals out of the business.
Penetration pricing - Answers :Setting a low price when launching a new product in
order to get established in the market.
Psychological pricing - Answers :Setting the price just below a round figure.
Skimming - Answers :Setting a high price initially and then lowering it later.
Sponsorship - Answers :Making a financial contribution to an event in return for
publicity.
Viral marketing - Answers :Any strategy that encourages people to pass on messages
to others about a product or a business electronically.
, Distribution channel - Answers :The route taken by a product from the producer to the
customer.
Distribution - Answers :The delivery of goods from the producer to the consumer.
Ergonomics - Answers :The study of how people interact with their environment and the
equipment they use often in the
workplace.
Ethical sourcing - Answers :Using materials, components and services from suppliers
that respect the environment, treat their workforce well and generally trade with
integrity.
Waste minimization - Answers :Reducing the quantity of resources that are discarded in
the production process.
M1 Money supply - Answers :Currency, coins, checking accounts demand deposits.
M2 Money Supply - Answers :M1 plus balances in most savings accounts and money
market mutual funds.
M3 Money Supply - Answers :Money includes M2 and long term purchase agreement.
5 Cs of Credit - Answers :Character, Capacity, Capital, Collateral, Conditions.
Federal Reserve System - Answers :Central banking system of the US - created in 1913
by the Federal Reserve Act - quasi public system.
Federal Open Market Committee (FOMC) - Answers :A committee within the FED that
designs and executes the particulars of monetary policy/ 12 members.
Structural unemployment - Answers :unemployment that occurs because individuals
lack skills valued by employers
Frictional unemployment - Answers :unemployment that occurs when people take time
to find a job
Cyclical unemployment - Answers :unemployment caused by economic downturns, the
business cycle during recession period.
Seasonal unemployment - Answers :state of being out of work because of the time of
year.
Creditworthiness - Answers :is the key determinant of how likely it is that the loan will be
repaid.
