Vocab. A-E Flashcards
Asset
Items that one owns; they can be financial or non-financial in nature.
Balanced budget
Government revenues equal expenditures.
Banks
Corporations chartered by state or federal government to offer numerous financial services such as checking and savings accounts, loans, and safe deposit boxes; the Federal Deposit Insurance Corporation (FDIC) insures accounts in federally chartered banks.
Budget
A plan for managing income and expenses
Budget deficit
A shortfall of government receipts from government spending
Budget surplus
An excess of government receipts over government spending
Capital gains
Gains from selling stocks or other financial investments for more than what was paid for them.
Commissions
Fees to a third party for assisting in a business transaction, such as buying or selling an asset.
Compound interest
Interest credited daily, monthly, quarterly, semi-annually or annually on both principal and previously credited interest.
Credit
All money borrowed, other than home financing.
Credit bureaus
Organizations to which business firms apply for credit information on prospective customers.
Credit card
Any card, plate, or coupon book that may be used repeatedly to borrow money or buy goods and services on credit.
Credit reports
Statements containing information about prospective customers furnished by credit bureaus
Credit unions
Not-for-profit cooperatives of members with some type of common bond (e.g., employer) that provide a wide array of financial services, often at a lower cost than banks.
Creditworthy
Having the ability and willingness to repay debts.
Debt
An obligation or liability to pay or render something to someone else.
Debit card
A card issued by a bank that directly accesses available funds from a bank account, typically a savings or checking account.
Deductions
Amounts that are or may be lawfully deducted from tax obligations.
Discount rate
The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank’s lending facility–the discount window.
Disposable income
The income a person has left to spend or save after taxes and other required deductions have been taken out of his or her gross pay; net pay.
Diversification
To distribute money among several financial investment tools in order to average the risk of loss
Dividends
Periodic payments of the profit of a corporation to its stockholders or owners.
Employee benefits
Something of value that an employee receives in addition to a wage or salary. Examples include health insurance, life insurance, discounted child care and subsidized meals at the company.
Employer-sponsored savings plans
A government-approved program through which an employer can assist workers in building their personal retirement funds.
Exemptions
Release from tax payments that the IRS allows.
