| A | B |
|---|
| disposable income | money available after taxes have been paid |
| balance | the amount of money in the account |
| liquidity | assets such as an account can be converted into cash with little or no loss in interest payments |
| time deposits | require the saver to leave money in the account for a specific amount of time |
| maturity | the length of time that money must be deposited |
| savings rate | is the percentage of people's disposable income that is NOT spent |
| investment | occurs when people exchange their money for something of value with the expectation of earning a profit in the future |
| budget | spending and saving plan |
| fixed expenses | those payments that remain constant from month to month such as a mortgage |
| flexible expenses | expenses that vary from month to month such as eating out |
| diversification | a person chooses a variety of investments such as CDs, stocks, bonds |
| real investment | when investors use money to create a new capital good |
| capital accumulation | the expansion of the capital goods existing in an economy, it promotes economic growth |
| infrastructure | transportation systems including roads, bridges, harbors, and airports and public facilities |
| venture capital | money invested in entrepreneurial enterprises |
