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Google Penalties
Exact Match Domain (EMD) Penalty

Yes. Your website can be penalized simply for the domain you happen to choose as the URL for it. This is especially true if the URL/domain name looks too much like a keyword search term. This is the penalty described by Google as an exact match domain or EMD penalty.

The best way to describe an exact match domain penalty is with examples:

www.highyieldbonds.com
www.newxboxgames.com

As far as Google is concerned both of these domain names also happen to be exact search terms that someone might use to find a broker that sells high yield bonds or a retailer of new Xbox games. As of September 2012, these URL's, as well as many other websites with "low quality EMDs" violate Google's quality guidelines and therefore are at risk of being hit with an EMD penalty.