Topic 6 5-7 Review

Front

What is the term "return" in finance?

Back

money an investor receives above and beyond the money initially invested

Front

portfolio

Back

collection of financial assets

Front

investment

Back

redirecting resources from being consumed today to create future benefits

Front

diversification

Back

spreading out investments to reduce risk

Front

financial system

Back

arrangement that allows the transfer of money between savers and borrowers

Front

financial asset

Back

claim on the property of a borrower

Front

diversification

Back

lowering risk by making different kinds of investments

Front

financial intermediary

Back

helps direct money from savers to borrowers

Front

financial system

Back

allows money to go back and forth between savers and borrowers

Front

investment

Back

something bought to make money in the future