Final answer:
Vocabulary terms such as Dividend, Balance Sheet, Capital Finance, Finance, Financial Statement, Junk Bonds, and Liquidity Ratio are matched with their respective definitions that relate to shareholder profits, assets and liabilities, investing funds, money management studies, riskier debt instruments, and a bank's liquid assets.
Step-by-step explanation:
To match the vocabulary terms to the correct definitions, here are the pairs:
- A return of excess profit to a shareholder - Dividend
- A company’s statement of assets and liabilities - Balance Sheet
- Funds or resources available to fund investments and provide necessary cash flow - Capital Finance
- The part of economics that studies money management, credit, banking, and investments - Finance
- A statement of a company’s financial condition at a point in time - Financial Statement
- Debt instruments that are below investment grade and thus considered riskier investments - Junk Bonds
- The ratio of liquid assets to the total obligations a bank has - Liquidity Ratio
The balance sheet is an important financial document that includes assets—items of value like cash and property—and liabilities—debts owed, like mortgages. The difference between them represents a company's net worth or bank capital. Junk bonds are higher-risk investments, while the liquidity ratio is key to understanding a bank's ability to cover short-term obligations.