Final Review Vocabulary Flashcards
Assets
owned items of value, such as cash, real estate, personal possessions, and investments
ATM (automated teller machine)
A computer terminal that allows a withdrawal of cash from an account
Budget
a plan for spending and investing money
Commercial bank
a for profit institution that offers a full range of financial services, including checking, savings and lending.
Common stock
a unit of ownership in a company entitling the stockholder to voting privileges
Consumer
a person who purchases and uses goods or services
Credit rating
a measure of a person’s ability and willingness to make credit payments on time
Credit union
a nonprofit financial institution that is owned by its members and organized for their benefit
Demand
the amount consumers are willing and able to buy
depository institution
institutions that handle deposited money, such as commercial banks, credit unions, and savings and loan associations.
Direct Deposit
an automatic deposit of net pay to an employee’s designated bank account
Down Payment
a portion of the total cost of an item that must be paid at the time of purchase
Emergency Fund
a savings account that can be accessed quickly to pay for unexpected expenses or emergencies
Goal
The things one wants to accomplish
Income
cash inflow, including paychecks, allowances, and interest earned
Inflation
rise in the level of prices for goods and services over time
Interest
The price that is paid for the use of another’s money
Liabilities
debt that one owes
Liquidity
the ability to easily convert financial assets into cash without loss in value
Long term goal
Goal that is 5 years in the future
Medium Term Goal
Goal that is between 1-5 years in the future
Mutual Fund
an investment in which investors pool their money to buy stocks, bonds, and other securities
Non-depository institution
institutions that act as intermediaries between savers and borrowers
Opportunity Cost
what is given up in when making one choice instead of another
Preferred Stock
a type of stock that gives an owner the advantage of receiving cash dividends before common stockholders receive cash dividends
Principal
the original amount of money on deposit
Real Estate
land and any structures that are on it, such as a house or any other building that is on it
Short Term Goal
goal that is less than a year away
Supply
The amount that producers are willing and able to produce
Value
the beliefs and principles you consider important, correct, and desirable.
