Economics Unit 6 - Money, Baking and the Stock Market Review
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Created by:
Emersong45 on June 2, 2011
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15 terms
Terms | Definitions |
|---|---|
 Where is our federal reserve bank? | Chicago |
| What does the federal reserve do? | promotes maximum employment, stable prices, and moderate long-term interest rates |
| When was the federal reserve established? | 1913 |
| What does the structure of banks in the federal reserve look like? | from bottom to top: board of governors; federal reserve banks; member banks; other depository institutions and the american people; federal open market committee; Advisory councils |
| What impact did 9/11 have on money and banking? | financial market were disrupted, causing the fed to increase loans and decrease interest rates |
| What is the purpose of investing in the stock market? | to make money/a profit |
| who is more willing/able to choose the stock market as an investment versus another type of investment option? | a younger person versus and older person |
| What are the two ways in which a stockholder can make money? | earning dividends or selling the stock |
| What must a company do before you can buy stock from it? | go public |
| Why would a company go public? | to fund company expansion |
| What are the two forms of stock? | common and preferred |
| What does "div" represent on a stock quote table? | Dividend per Share - the annual dividend payment per share |
| What does "P/E" represent on a stock quote table? | Price/Earning Ratio - the current stock price/earning per share from the last 4 quarters |
| What does "Vol 00s" represent on a stock quote table? | Trading Volume - total number of shares traded for the day in hundreds |
| What does "Net Chg" represent on a stock quote table? | Net Change - the dollar value change in stock price from teh previous day closing price |
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