| A | B |
|---|
| discretionary income | Money that is left over when the bills have been paid |
| principal | The amount of money deposited by a saver (2) The total amount that is financed or borrowed and on which interest is computed |
| interest | Money paid for the use of money; earnings on a saving account |
| compound interest | Interest computed on the original principal plus the accumulated interest |
| annual percentage yield | The actual interest rate an account pays per year, with compounding included |
| share account | A saving account at a credit union; the shares are ownership interest in the credit union |
| securities | Stocks and bonds issued by corporations or by the government |
| stockbroker | An employee of a brokerage firm, who buys and sells securities for investors |
| liquidity | The ability of an asset to be converted into cash quickly without loss of value |
| certificate of deposit (CD) | A deposit that earns a fixed interest rate for a specified length of time |
| maturity date | The date on which an investment becomes due for payment |
| money market account | A combination savings-investment plan in which money deposited is used to purchase safe, liquid securities |
