| A | B |
|---|
| Power of Attorney | A document that allows a person to act on someone else's behalf. |
| Living Will | A will in which the signer requests not to be kept alive by medical life-support systems in the event of a terminal illness. |
| stocks | An example of a high-risk investment. |
| liquidity | A factor that imvolves the ease of changing the investment into cash. |
| cash in the bank | Of the following, which is the most liquid investment? A home, a car, a coin collection, and cash in the bank. |
| high resistance | What an invenstment has if it is not affected by inflation. |
| savings account | The safest form of investment. |
| higher than the inflation rate | Rrate of return on an investment should be: |
| inflation | What is an increase in the general level of prices? |
| variable-rate investments | Investments that yield a changing kind of return. |
| futures contract | A type of contract based on anticipation of higher market prices for the commodity. |
| yield | The percentage of interest that savings earns over a period of time: |
| inflation | An increase in the general level of prices. |
| invest | When you put money to use in order to make money on it. |
| regular savings account | The simplest kind of savings plan to maintain: |
| mortgage | Property put up for a loan that the lender can take if the loan is not paid back. |
| commodity | A legal document giving the lender a claim on the property if payment is not made. |
| agent | A high-risk investor is also known as: |
| Life insurance | Protects the standard of living of the survivors. |
| appreciation | When something is worth more now than when it was originally bought is called: |
| depreciated | When something loses value from the original purchase price, its value has: |
| collectibles | A person who owns a baseball collection is investing in: |
| equity | The difference between the price at which a home could be sold and the amount owed on the mortgage. |
| dividends | The part of the profit that is shared with the shareholders. |
| capital gain | If an investor pays $50 for a share of stock and sells the stock at $59 a share, the profit the investor gains is called |
| NYSE | The most popular exchange in the United States. |
| corporate bonds | The type of bonds General Electric Company would issue. |
| municipal bonds | To keep up with populatin growth, a local government may issue: |
| P/E ratio | The price of a stock divided by the earnings per share. |
| Bull Market | The name for a market when investors are optimistic about the economy. |
| Bear market | The name for a market with a pessimistic outlook. |
| securities | Stocks and bonds are also known as: |
| Preferred stockholders | Who is guaranteed dividends |
| face value | The value of a bond is its: |
| bondholder | Who lends to a corporation? |
| compound interest | The type of interest which is computed on the amount saved and interest. |
| certificate of deposit | An account at a bank that requires the money to stay in an account for a specific amount of time. |
| money market funds | Mutual funds, which are short-term debts of corporations and govenrment secruities that pay interest are called: |
| emergency fund | Saves money for a rainy day: |
| Trust | A legal arangement that helps manage the assets of an estate. |
| bond | A promise to pay a certain amount of money at a specified rate of interest at a certain time. |
| stockholder | Buys and sells securities. |
| Coupon rate | Interst rate on a bond is known as |
| Stock certificate | Proof of ownership in a corporation. |
