terms

Question 1

the initial amount of money borrowed or lent

Answer 1

principal

Question 2

money paid regularly, at a particular rate for the use of borrowed money the cost of borrowed money

Answer 2

interest

Question 3

the price paid for using someone elses money , expressed as a percentage of the amount borrowed

Answer 3

interest rate

Question 4

an interest rate that applies only to the prinicpal

Answer 4

simple interest

Question 5

interest paid on both the prinicpal and interest already accured

Answer 5

compound interest

Question 6

the process of putting money someplace with the intention of making finachiel gain the most common types of investments include certificates of deposits (CD) stocks, bonda mutual funds and real estate

Answer 6

investing

Question 7

shares of ownership in corporation

Answer 7

stock

Question 8

a certificate issued by a goverment or a publicly held coropation , promising to repay borrowed money to the lender at a fixed rate of interest and a specified time

Answer 8

bond

Question 9

earnings from an investment , stated as a percentage of the amount invested; usually calculated on an annual basis

Answer 9

rate of return

Question 10

pool of money used to to purchase a variety of stocks, bonds, or money mark investments

Answer 10

mutual funds

Question 11

a way of reducing potential risks and increasing potential returns by spreading money across different investments

Answer 11

diversifitcation

Question 12

the date on which the original loan amount is repaid

Answer 12

maturity

Question 13

the interest you receive as an investor

Answer 13

investment income

Question 14

is this simple or compund- calculated using only the balance of the deposit for a period

Answer 14

simple

Question 15

is this simple or compound?-interest accrues over time

Answer 15

compund

Question 15

is this simple or compund-?- amount at the end of one year is the principal for next year

Answer 15

compound

Question 16

is this simple of compound-?principal is the same every year

Answer 16

simple

Question 17

is this simple or compound-? fixed percantage of the principal amount

Answer 17

simple

Question 18

is this simple or compound?-based on the principal deposit plus interest earned

Answer 18

compound

Question 19

is this saving or investing-? for short term financial goals or being able to handle emergencies

Answer 19

savings

Question 20

is this saving or investing-? has a higher earning potential

Answer 20

investing

Question 21

is this saving or investing-? involves minimal risk; money is protected

Answer 21

savings

Question 22

is this saving or investing-? always involves risk;it is possible to lose some or all money

Answer 22

investing

Question 23

is this saving or investing-? earns interest that adds income , but generally at a lower return

Answer 23

savings

Question 24

is this saving or investing-?easy to access quickly, without fee or penalty

Answer 24

savings

Question 25

is this saving or investing-? for long term financial goals such as paying for college or planning for retirement

Answer 25

investment

Question 26

is this saving or investing-?more difficult to access; takes longer and may require payment of a fee or a fine

Answer 26

investment