| A | B |
|---|
| Bank | An institution for receiving, keeping & lending money |
| Bonds | Formal contract to repay borrowed money with interest at fixed intervals |
| Capital gain | Difference b/w a higher selling price & a lower purchase price |
| Capital loss | Difference between a lower selling price & a higher purchasing price |
| Collateral | Property used to secure a loan |
| Credit | Any form of deferred payment |
| Credit Rating | Evaluation made by credit bureaus of a borrower's overall credit history |
| Credit Union | Nonprofit bank owned by its members |
| Deductible | What you pay out of pocket before insurer covers expenses |
| Incentive | Expectation that encourages people to behave a certain way |
| Interest | Price paid for hte use of borrowed money or money earned on deposits |
| Investment | Act of redirecting resources from being consumed today |
| Liquidity | Ability to use as cash |
| Mutual Funds | Pools savings of many people & invests in variety of areas |
| Portfolio | Collection of financial assets |
| Premium | Money paid to an insurance company for a policy |
| Principal | Amount of money borrowed |
| Return | Money received above the initial investment |
| Savings | Income not used for consumption |
| Savings & Loan | Banks that accept deposits & specialize in offering long-term financing for homes |
| Savings accounts | Bank account used for depositing money that may be needed in a short period of time |
| Share | Portion of stock |
| Stocks | Certificate of ownership in a corporation |
| Federal Deposit Insurance Corp. | Government agency that insures customers deposits |
