Financial terms, accounting homework help


Question Description

You are being interviewed for a job as a financial assistant. As part of the interview process, the office manager tells you there will be a short test to assess your familiarity with basic financial terms which would play a role in your ability to discuss and understand funds acquisitions with peers and the general public.

You are a bit nervous about taking a test, but you did well taking a finance course in school, so you feel ready.

You are taken to a quiet room and given the following 10 financial terms. You are to write an explanation of the meaning of each of term in regards to meaning and real world application. The terms are as follows:

  • Net financial wealth
  • liquidity
  • credit
  • capital market
  • money market
  • debt securities
  • price indexes
  • insider trading
  • bond
  • financial disclosure

Put the answers in a separate table on this document. Using proper APA format, please cite the sources for your responses.3 pages

Tutor Answer

School: University of Maryland




Financial Terms
Student Name
Professor’s Name
Institution Name


Financial Terms

A financial assistant is a sensitive position in a business organization and thus requires
that the occupant of the office or post is well vast with the financial terms and issues in the
industry within which the business operates. This is helpful for the employer in determining
whether the applicant is suitable for the task. For the interviewee and potential as well as current
financial assistants, an understanding of the various terms used in the field is mandatory due to
the fact that it helps them remain relevant to the position and be able to properly represent the
organization whenever it is necessary; to stakeholders, staff, suppliers, and investors. The
subsequent section defines financial terms relevant to the financial assistant and their
applicability in the real world.

The Net financial wealth refers to the difference between a sector’s, businesses’ or
government’s financial assets and its outstanding liabilities. The nature of assets and liabilities
may vary from one organization to another, to put this in perspective, the housing sector shall be
used as an example. In this case, the financial assets are the savings made by individuals
(formal), the money saved in people’s homes (informal) as well as stocks and shares of the
housing sector. The liabilities are comprised of household bills, overdrafts and formal borrowing
(Office for National Statistics, 2014).

Liquidity, on the other hand, refers to the relative ease with which an asset or security can
be disposed of in a secondary market. To put this in perspective, a grocery store shall be
considered. The proceeds from the sales of fruits and vegetables are often in the form of cash, the



most liqui...

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