Chapter 22 and 23 Vocab Terms

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Across
  1. 2. a lending agreement between an individual lender and individual borrower
  2. 5. the value of a households accumulated savings
  3. 7. money with no intrinsic value whose ultimate value is guaranteed by a promise that it can be converted into valuable goods
  4. 9. a claim on a tangible object that gives the owner the right to dispose of the object as he or she wishes
  5. 12. a paper claim that entitles the buyer to future income from the seller
  6. 15. investing in several different assets so that the possible losses are independent events
  7. 16. the expenses of negotiating and executing a deal, one of the three tasks of our financial system is to reduce these
  8. 18. a means of holding purchasing power over time
  9. 22. an institution that transforms the funds it gathers from many individuals into financial assets
  10. 23. a claim on a bank that obliges the bank to give the depositor his or her cash when demanded
  11. 24. any asset that can be easily used to purchase goods and services
Down
  1. 1. a medium of exchange that has intrinsic value in other uses
  2. 2. an asset created by pooling individual loans and selling shares in that pool
  3. 3. an asset that individuals acquire for the purpose of trading goods and services rather than for their own consumption
  4. 4. when an asset can be quickly converted into cash without much loss of value
  5. 6. a financial intermediary that creates a stock portfolio and then resells shares of this portfolio to individual investors
  6. 8. uncertainty about future outcomes that involve financial losses and gains, one of the three tasks of our financial system is to reduce this
  7. 10. a measure used to set prices and make economic calculations
  8. 11. a company that provides a guaranteed payment to policy holders beneficiaries when the policy holder dies
  9. 13. when an asset cannot be quickly converted to cash without much loss of value
  10. 14. a financial intermediary that provides liquid assets in the form of bank deposits to lenders and uses those funds to finance the illiquid investment spending needs of borrowers
  11. 17. a type of mutual fund that holds assets in order to provide retirement income to its members
  12. 19. when a borrower fails to make payments as specified by the loan or bond contract
  13. 20. a requirement to pay money in the future
  14. 21. money whose value derives entirely from its official status as a means of payment