8 MT

Question 1

investment

Answer 1

the commitment of resources to a project or purpose that is expected to bring future profit to the investor

Question 2

debtor

Answer 2

a person who borrows money or capital

Question 3

creditor

Answer 3

a person who lends money or capital

Question 4

checking account

Answer 4

an account that allows checks to be written up to the dollar amount the account holder has deposited

Question 5

check

Answer 5

an account holder’s written order that authorizes his bank to withdraw funds from his account

Question 6

money market account

Answer 6

an account that allows limited transactions and pays and interest rate that changes with the demand for loans

Question 7

FDIC

Answer 7

governmental agencies that insures private banks and accounts up to $250,000 per depositor

Question 8

premium

Answer 8

amount paid to an organization in exchange for insurance coverage

Question 9

stocks

Answer 9

the resources corporations gather by selling ownership in their businesses

Question 10

shares

Answer 10

equal portions of a corporation’s stock

Question 11

dividend

Answer 11

a share of a corporation’s profit

Question 12

bond

Answer 12

a document that guarantees the bondholder the amount of his original investment plus a specified rate or interest by a certain date; one of the safest forms of investment

Question 13

liquid investments

Answer 13

an asset, such as a stock bond, or mutual fund, that can be easily converted into other investments or cash without much time or difficulty

Question 14

the grasshopper and the ant

Answer 14

everybody needs to save in preparation for the possibility of future hard times

Question 15

the ant and the grain of wheat

Answer 15

shows the benefits of investment. you can end up with a lot more than you had before

Question 16

joseph and the bread seller

Answer 16

those that save are often paid well for the use of what they have reserved when other people need to borrow it

Question 17

parable of the talents

Answer 17

Jesus followers must make good use of their time and resources on earth

Question 18

savings account

Answer 18

a bank account that allows the account holder to earn interest on deposits

Question 19

certificate of deposit

Answer 19

a savings account that guarantees a certain interest rate and has a specified maturity date

Question 20

insurance

Answer 20

contract between two parties in which one party protects the other against certain types of loss in exchange for payments

Question 21

pension plan

Answer 21

an arrangement provided by an individual’s employer for the intent of providing for the employee’s retirement from work

Question 22

defined benefit plan

Answer 22

a type of pension plan in which an employer pledges to pay an employee a certain amount per month after retirement based upon the employee’s salary and length of service *employees don’t contribute money

Question 23

stockholders

Answer 23

a person who owns shares of stock in a corporation

Question 24

limited liability

Answer 24

legal protection provided to stockholders of a corporation; if a corporation fails to declare bankruptcy, the individual stockholders do not personally have to pay the firm’s creditors

Question 25

cash dividends

Answer 25

payment in the form of money

Question 26

stock dividends

Answer 26

payment in the form additional stock in the firm

Question 27

common stock

Answer 27

a type of stock that allows holders to vote concerning corporate matters; common stock pays dividends only after paying diffident to preferred stockholders

Question 28

preferred stock

Answer 28

a type of stock that pays its holders an annual fixed amount in cash dividends if the company makes enough profit in a year to pay them

Question 29

mutual funds

Answer 29

investment company that combines the resources of all its shareholders and invests the money in a wide variety of areas

Question 30

three key elements that determine how much of your investment will grow

Answer 30

time, rate of return, and amount invested