These flashcards aren't stored yet — they'll disappear when you leave. Create a free account to keep them, and unlock everything below.
What is finance?
How individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets.
Browse your cards here, or sign up to study with spaced repetition.
What does the financial environment encompass?
The financial system, institutions, markets, and individuals that make the economy operate efficiently.
Browse your cards here, or sign up to study with spaced repetition.
What is entrepreneurial finance?
How growth-driven, performance-focused, early-stage firms raise funds and manage operations and assets.
Browse your cards here, or sign up to study with spaced repetition.
What is personal finance?
How individuals prepare for financial emergencies, protect against premature death and property loss, and accumulate wealth.
Browse your cards here, or sign up to study with spaced repetition.
What are the three areas of finance?
Institutions and markets, investments, and financial management.
Browse your cards here, or sign up to study with spaced repetition.
What do institutions and markets do?
Help the financial system operate efficiently and transfer funds from savers and investors to those who seek to spend or invest.
Browse your cards here, or sign up to study with spaced repetition.
What is involved in investments?
Sale or marketing of securities, analysis of securities, and management of investment risk through portfolio diversification.
Browse your cards here, or sign up to study with spaced repetition.
What does financial management include?
Financial planning, asset management, and fund-raising decisions to enhance firm value.
Browse your cards here, or sign up to study with spaced repetition.
What happened to technology stocks in 2000?
The price bubble burst.
Browse your cards here, or sign up to study with spaced repetition.
What exacerbated the 2001 recession?
The September 11 terrorist attack.
Browse your cards here, or sign up to study with spaced repetition.
When did the housing price bubble burst?
In mid-2006.
Browse your cards here, or sign up to study with spaced repetition.
What followed the 2007-08 financial crisis?
The 2008-09 Great Recession.
Browse your cards here, or sign up to study with spaced repetition.
How has economic recovery been since the 2007-09 near disaster?
Slow, with worldwide economic growth remaining low.
Browse your cards here, or sign up to study with spaced repetition.
What is the time value of money?
Money in hand today is worth more than the promise of receiving the same amount in the future.
Browse your cards here, or sign up to study with spaced repetition.
Why does the time value of money exist?
A sum of money today could be invested and grow over time.
Browse your cards here, or sign up to study with spaced repetition.
What is an example of the time value of money?
$1,000 today could earn $60 interest over the next year, making it worth $1,060.
Browse your cards here, or sign up to study with spaced repetition.
What is the risk-return tradeoff?
Investors choose riskier investments only if the expected return justifies the greater risk.
Browse your cards here, or sign up to study with spaced repetition.
What does risk refer to in finance?
The uncertainty about the outcome or payoff of an investment in the future.
Browse your cards here, or sign up to study with spaced repetition.
What is finance?
How individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets.
What does the financial environment encompass?
The financial system, institutions, markets, and individuals that make the economy operate efficiently.
What is entrepreneurial finance?
How growth-driven, performance-focused, early-stage firms raise funds and manage operations and assets.
What is personal finance?
How individuals prepare for financial emergencies, protect against premature death and property loss, and accumulate wealth.
What are the three areas of finance?
Institutions and markets, investments, and financial management.
What do institutions and markets do?
Help the financial system operate efficiently and transfer funds from savers and investors to those who seek to spend or invest.
What is involved in investments?
Sale or marketing of securities, analysis of securities, and management of investment risk through portfolio diversification.
What does financial management include?
Financial planning, asset management, and fund-raising decisions to enhance firm value.
What happened to technology stocks in 2000?
The price bubble burst.
What exacerbated the 2001 recession?
The September 11 terrorist attack.
When did the housing price bubble burst?
In mid-2006.
What followed the 2007-08 financial crisis?
The 2008-09 Great Recession.
How has economic recovery been since the 2007-09 near disaster?
Slow, with worldwide economic growth remaining low.
What is the time value of money?
Money in hand today is worth more than the promise of receiving the same amount in the future.
Why does the time value of money exist?
A sum of money today could be invested and grow over time.
What is an example of the time value of money?
$1,000 today could earn $60 interest over the next year, making it worth $1,060.
What is the risk-return tradeoff?
Investors choose riskier investments only if the expected return justifies the greater risk.
What does risk refer to in finance?
The uncertainty about the outcome or payoff of an investment in the future.
Are you sure you want to delete 0 flashcard(s)? This cannot be undone.
Select tags to remove from 0 selected flashcard(s):
Loading tags...