Economics Unit 3 Vocabulary

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Across
  1. 2. term that describes both stocks and bonds
  2. 6. interest calculated on the amount of interest accumulated as well as on the original principal of a loan or the original amount of money deposited in a savings account
  3. 8. statistical series of 500 stocks used to monitor prices on the NYSE, American Stock Exchange, and OTC.
  4. 9. company that sells stock in itself and uses the proceeds to buy stocks and bonds issued by other companies
  5. 10. checking accounts. Checking accounts are called demand deposits because the payee, the person to whom the check is made out, can “demand” the amount of the check in currency.
  6. 11. person who buys or sells securities for investors
  7. 12. such as money used by a person or business
  8. 14. interest calculated as a percentage of the original principal of a loan or the original amount of money deposited in a savings account
  9. 16. the use of income today in a way that allows greater production in the future. An example of investment is when a business uses income to build a new factory or buy new equipment.
  10. 17. situation in which the outcome is not certain, but the probabilities can be estimated
Down
  1. 1. person who owns a share or shares of stock in a corporation; same as shareholders
  2. 3. certificate of ownership in a corporation; common or preferred stock
  3. 4. statistical series of 30 representative stocks used to monitor price changes on the New York Stock Exchange
  4. 5. a part of a corporation’s income after taxes that many corporations pay to the owners of stock
  5. 7. certificates issued by a government (or corporation) that pay the owner of the certificates the amount borrowed plus interest. Government bonds are the safest form of investment.
  6. 13. one of the ways to save money in a bank. Such a deposit must be pledged to the bank for a specified period of time and cannot be withdraw before the end of this period without the depositor’s paying a financial penalty. The advantage of time deposits s that the interest offered on them is higher than that offered on regular savings accounts.
  7. 15. potential for being readily convertible into cash or other financial assets