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12 Cards in this Set
- Front
- Back
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Discretionary Income
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What you have left over after you have paid your bills.
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Principal
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The amount of money deposited by a saver.
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Interest
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For use of the saver's money, the financial institution pays the saver money.
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Compound Interest
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Is interest computed on the original principal plus accumulated interest.
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Annual Percentage Yield (APY)
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This is the acutal interest rate the account pays per year, with compounding included.
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Share Account
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A savings account at a credit union.
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Securities
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Are stocks and bonds issued by corporations or by the government.
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Stockbroker
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Investors buy and sell securities through a stockbroker, who works for the brokerage firm.
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Liquidity
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Is the ability of an asset ( a resource owned) to be converted into cash quickly without loss of value.
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Certificated of Deposit (CD)
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Or time deposit, is a deposit that earns a fixed interest rate for a specified length of time for example, 5% for six months.
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Maturity Date
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The date on which an investment becomes due for payment.
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Money Market Account
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Is a combination savings- investment plan in which money deposited is used to purchase safe, liquid securities.
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