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| Question | Answer |
| What is a corporation? | A legal entity created by a state, separate and distinct from its owners and managers, having unlimited life, easy transferability of ownership, and limited liability. |
| What is a money market? | The financial market in which funds are borrowed or loaned for short periods (less than one year). |
| What are Futures Markets? | The markets in which participants agree today to buy or sell an asset at some future date. |
| What is a Mutual Fund? | Organizations that pool funds which are collected by investors, to purchase securities such as stocks, bonds, money market instruments and similar assets and thus reduce risks through diversification. |
| Fixed Assets Turnover Ratio | The ratio of sales to net fixed assets. It measures how effectively the firm uses its plant and equipment. |
| What is an annuity? | A contractual financial product sold by financial institutions that is designed to accept and grow funds from an individual and then pay out a stream of payments at a later date. (A series of equal payments at fixed intervals for a specified number of periods.) |
| What is a zero-coupon bond? | A bond that pays no annual interest but is sold at a discount below par, thus compensating investors in the form of capital appreciation. Free of reinvestment risk. |
| What is a Treasury Bill? | It is a short-term debt obligation backed by the U.S. government with a maturity of less than one year and zero risk. |
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