FINANCE TERMS | COMPLETE STUDY
GUIDE & PRACTICE QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Finance The study of applying specific value to things we own, services we use, and
decisions we make.
Financial Markets The places and processes that facilitate the trading of financial assets between
investors.
Investors Those who buy securities or other assets in hopes of earning a return and getting
more money back in the future.
Retained Earnings The portion of company profits that are kept by the company rather than
distributed to the stockholders as cash dividends.
Investment The analysis and process of choosing securities and other assets to purchase.
Financial Management The process for and the analysis of making financial decisions in the business
context.
Financial Institutions and Markets The organizations that facilitate the flow of capital between investors and
companies.
, International Finance The use of finance theory in a global business environment.
Risk A potential future negative impact to value and/or cash flows. It is often
discussed in terms of the probability of loss and the expected magnitude of the
loss.
Financial Asset A general term for securities like stocks and bonds that represent ownership in a
cash flow.
Real Assets Physical property like gold, machinery, equipment, or real estate.
Real Markets The places and processes that facilitate the trading of real assets.
Time Value of Money (TVM) The theory and application of valuing cash flows at various points in time.
Defined Benefit Plan A retirement plan in which the employer funds a pension generally based on
each employee's years of service and salary.
GUIDE & PRACTICE QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Finance The study of applying specific value to things we own, services we use, and
decisions we make.
Financial Markets The places and processes that facilitate the trading of financial assets between
investors.
Investors Those who buy securities or other assets in hopes of earning a return and getting
more money back in the future.
Retained Earnings The portion of company profits that are kept by the company rather than
distributed to the stockholders as cash dividends.
Investment The analysis and process of choosing securities and other assets to purchase.
Financial Management The process for and the analysis of making financial decisions in the business
context.
Financial Institutions and Markets The organizations that facilitate the flow of capital between investors and
companies.
, International Finance The use of finance theory in a global business environment.
Risk A potential future negative impact to value and/or cash flows. It is often
discussed in terms of the probability of loss and the expected magnitude of the
loss.
Financial Asset A general term for securities like stocks and bonds that represent ownership in a
cash flow.
Real Assets Physical property like gold, machinery, equipment, or real estate.
Real Markets The places and processes that facilitate the trading of real assets.
Time Value of Money (TVM) The theory and application of valuing cash flows at various points in time.
Defined Benefit Plan A retirement plan in which the employer funds a pension generally based on
each employee's years of service and salary.
