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Banks, Credit, and the Economy

AB
MoneyA medium of exchange that sets a common standard of value
CurrencyCoins and paper money printed by the government
DepositPut money INTO the bank
WithdrawalTake money OUT of the bank
LoanPaying a bank to let you borrow money
InterestThe fee charged for the right to borrow money
Federal ReserveThe central bank of the United States
InflationThe rise of prices over time
IncomeA person's source of money, dependent on the ability to produce
ReserveMoney that a bank keeps and does not lend out
InvestmentMoney spent in order to make money
EntrepreneurPeople who take risks to start a new business
Credit reporting bureauCompany that keeps track of your credit history
Credit counselingHelps people control their finances and use credit wisely


Mrs. Neff

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