Chapter 8 review 

1.        What do you call a person who borrows money or capital?

2.       What do you call a person who lends money or capital?

3.       Investor who loans money or capital to a business needs to be rewarded for taking a ______.

4.       A checking account is a form of ___________________account.

5.       A certificate of deposit is a type of ____________ account.

6.       Bank account that allows the account holder to earn interest on deposits is called _________.

7.       Written order authorizing the withdrawal of funds from an account

8.       Account that allows limited transactions and pays changeable interest rate

9.       Account that allows checks to be written up to the dollar amount deposited in the account

10.   Account that does not allow transactions and pays no interest

11.   Account that guarantees a certain interest rate and has a specified maturity date

12.   Holder of ______________ receive dividends only if there is still profit after all other investors have been paid

13.   Which of these options is  the safest form of investment in a corporation?
a. common stock              b. preferred stock           c. bond                 d. mutual fund

14.   Placing money in ______________allows a saver to spread out his investment.
a. common stock              b. preferred stock           c. bond                 d. mutual fund

15.   Holders of ________ can vote concerning corporate matters.
a. common stock              b. preferred stock           c. bond                 d. mutual fund

16.   A portion of a corporation’s stock is called ____________
a. dividend          b. share                                c. premium         d. liability

17.   What are the 3 elements that determine how much a investment grows?

18.   Shares of a corporation’s profit are called ________________

19.   In 1935, Congress  approved the __________Act, which was supposed to insure people against poverty in old age.