Vocab quiz Flashcards
Compound Interest
interest earned on both the principal amount and any interest already earned.
Finance
The science of the management of money and other assets; the management of money, banking, investments, and credit.
Future Value
What an amount invested today at a particular interest rate will be worth in the future.
Risk
Degree of uncertainty of return on an asset; the possibility of loss.
Bank
a depository institution where one can keep and borrow money and take care of financial affairs
Credit Union
a cooperative nonprofit financial institution that is privately owned and controlled by its members. Provides depository and lending services to its members
FDIC
(federal deposit insurance corp) an agency of the US that promotes public confidence in the financial system by insuring deposits in banks and thrift institutions
Federal Reserve
central bank of the US. The Fed incorporates 12 fed reserve branch banks located in major cities across the nation along with all national banks all start chartered commercial banks and some trust companies. It helps to regulate the US monetary and banking system.
Financial Advisor
A professional who provides financial planning and advice on financial matters.
Financial literacy
ability of individuals to make appropriate decisions in managing their personal finances.
Financial services industry
Financial institutions that help consumers, businesses, and governments manage money, these institutions can be depository or not.
Insurance company
a financial institution that protects persons against the risk of financial loss.
Interest
a fee paid for the use of money over time. In other words, its the cost of borrowing money. Interest is often expressed as a percentage of the amount borrowed
Present value
the value of a future cash stream discounted at the appropriate market interest rate
Simple interest
the amount of interest based on a principle amount and not on earned interest
