| A | B |
|---|
| Consumer | usually borrow money to purchase large ticket items such as homes and cars. |
| Businesses | usually borrow money to operate or expand their business, which may include purchasing a building, replacing old equipment, or offering new products. |
| Government | may borrow money to improve or expand transportation, schools, or other public services. |
| Saving | putting away money for future use. |
| Investing | using savings to earn more money for future financial security. |
| Main goals of savers and investors | include making available immediate income and long-term growth. |
| Growth of savings | interest earned when others borrow your money. |
| Simple interest | the amount of money paid to saver on amount deposited for a period of time. |
| Compound interest | the amount of money paid to saver on money deposited and interest previously earned for a period of time. |
| Certificates of deposits (CDs) | requires a minimum deposit, money to remain deposited for a period of time without penalties. Penalties may be assessed if money is withdrawn before specified time. |
| Money market account | requires a minimum deposit and interest is earned based on government and corporate securities. Usually withdrawals are allowed without penalties. |
