Economics

broker

A ________ is a person who buys and sells securities for clients.

D.) oxidized

A car that has permanently loses its shine is said to be A.) polished, B.) Waxed, C.) restored, D.) oxidized

High bailling

An unrealistically high price offered by the dealer for the buyer's old car as part of the new car deal

Low bailling

An unrealistically low price offered by the dealer for the buyer's old car as part of the new car deal

VIN

Each car has a personal/unique _________ to identify it.

Political risk

Government actions that affect business profits.

Collectibles

Items that people like to acquire and possibly sell for profit

D.) Speculation

The final level or realm of investing is called A.) put, B.) take, C.) permanent, D.) speculation

Financial pages

The section of a newspaper that contains financial data is

B.) Depreciation

The single greatest cost of owning a new car is A.) the car payment, B.) the depreciation, C.) gasoline, D.) insurance

False

True or False: An investment adviser is responsible for your decisions.

True

True or False: Dealer add-ons are considered unnecessary and expensive.

False

True or False: Leasing a car is not very popular option these days.

False

True or False: Low-balling gives you the best possible deal for your trade in

True

True or False: Market risk is caused by business declines or other events

True

True or False: Most new car dealers offer financing options for car purchases

False

True or False: Political risk refers to the effects of higher interest rates when you are locked into lower rates.

False

True or False: Public corporations are not required to publish annual reports

Annuity

a contract issued by an insurance company to pay you regular income, usually after retirement

Car lease

a contractual agreement, that allows monthly payments for the use of a vehicle, without ownership

Polishing compound

can be used to ride the surface of a car of scratches, scuffs, and stains

Abrasives

coarse and strong chemicals that can damage the paint on a car

Inflation

A rise in the general level of prices is known as __________.

90

According to the AAA, for subcompact cars, the dealer has paid about ______ percent of the sticker price.

Annual report

An ___________ is a document that gives the financial history of a corporation.

A.) 1 year or less

For how long are Treasury bills issued? A.) 1 year or less, B.) 2 years, C.) 10 years, D.) 30 years

Financial advisers

Professional investment planners are also known as

Buyer's guide

The Federal Trade commission requires dealers to place a sticker, on all used cars they offer. This is called ______

Investing Risk

The chance that an investment's value will decrease is called ____________.

Diversification

The spreading of risk among many types of investments

Investing

The use of savings to earn a financial return.

Test drive

To _______ a vehicle you can compare ride, handling, features, and cost of several dealers.

C.) An annual report

To find the most detailed data about a corporation, consult A.) the financial pages, B.) a discount broker, C.) an annual report, D.) a financial magazine

True

True or False: A investment in real estate is generally considered relatively safe but fairly liquid

Appreciate

Very old vehicles in excellent condition may ________ or increase in value.

D.) turning the wheel when the car is motionless

Which of the following is not a good driving habit? A.) giving a cold engine a brief chance to war up, B.) Glancing at gauges as you drive, C.) wearing a seat belt, D.) turning the wheel when the car is motionless

C.) Market risk

Which of these risks is associated with a business decline? A.) Long-term risk, B.) Speculative risk, C.) Market risk, D.) Political risk

Discount brokers

Who buys and sells securities for clients for a reduced commission?

Investor services

__________ provide financial data for interpretation. Ex. Moody's

Vehicle emission test

assures that the car meets the minimum clean air standards

Lemon laws

consumers are protected by these laws which identify cars as being unrepairable

Futures

contracts to buy and sell commodities for a specified price on a specified future date

Bonds

debt obligations of corporation or a government Ex. municipal bonds or corporate bonds

Pre-approval

finding out how much money you can borrow

Dealer add-ons

high priced, high profit dealer services with little or no value

Car title

lists the legal owner and the registered owner of a vehicle

Penny stocks

low-priced stocks of a small companies that have no track record. Stock usually sells for under a dollar per share.

Mutual fund

pools of money many investors and buys a large selection of securities

Stock

represent ownership in a corporation

Sticker price

suggested retail price displayed in printed form on the vehicle

Upholstery

the car's interior or covering of the seats

Discount

type of bond purchases for less than its maturity value Ex. A series EE savings bond

Depreciation

the loss in value of a vehicle during it's life time

Oxidizing

the process of a car losing it's shine or color

Option

the right but no obligation to buy or sell a commodity or stock for a specified price within a specified time period

Warranty

written guarantee of the soundness of a product