Define the Following Bond in Finance Terms Flashcards

Learn and Define the Following Bond in Finance Terms with our Flashcards. Increase your vocabulary related to the Following Bond in Finance Terms with these Flashcards easily.

309 cards   |   Total Attempts: 188
  

Cards In This Set

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Generally, the longer the loan term:
  1. the higher the interest rate risk
Someone who buys an asset or a property interest in an asset is making a/an:
  1. ownership investment
A certificate of indebtedness issued by a governmental body or a corporation is a:
  1. bond
Which of the following is NOT true of market interest rates?
  1. High market interest rates encourage refinancing
. Stocks and bonds are traded in specialized markets that are regulated by the:
  1. Securities and Exchange Commission
Mortgage lenders screen loan applicants to evaluate the:
  1. risk of default
. A mortgage lender's risk of loss relates to:
  1. the possibility that the proceeds from a foreclosure sale of the property wouldn't cover the loan balance
. An investor who is interested in the amount of money an investment will produce is primarily concerned about the investment's:
  1. yield
. Which of the following statements about securities is true?
  1. Securities give the holder a property interest or a right to payment
An investor invests money in expectation of a return on the investment. Depending on the type of investment, the return may be any of the following, except:
  1. depreciation
The Federal Reserve System was created through the:
  1. Federal Reserve Acts of 1913 and 1916
How many members of the Federal Reserve Board are there?
  1. 7
The Fed's monetary policy is controlled by:
  1. the Board of Governors
. When the Fed buys and sells government securities, the transactions are known as:
  1. open market operations
A federal deficit occurs when, in a given year, the federal government
  1. spends more than it receives in revenue