| A | B |
|---|
| disposable income | money available after taxes have been paid |
| balance | amount of money in one's account |
| liquidity | assets in an account can be converted into cash with little or no penalty |
| time deposits | saver must leave money in account for a specific amout of time |
| maturity | the length of time money must be deposited |
| savings rate | percentage of people's disposable income; money that is not spent |
| investment | exchanging money with hopes for a profit in the future |
| budget | lists fixed and flexible expenses |
| fixed expenses | payments that remain constant |
| flexible expenses | expenses that can vary month to month |
| diversification | person chooses a variety of investments |
| real investment | when investors use money to create a new capital good |
| capital accumulation | expansion of the capital goods existing in an economy |
| infrastructure | transportation systems |
| venture capital | money invested for entrepreneural enterprises |
