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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 you 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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the financial institution pays the saver money.
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compound interest
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is the interest computed on the original principle plus accumulated interest.
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annual percentage yield(APY)
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actual interest rate the account pays per year, with compounding included.
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share account
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credit union members save their money in the form of "shares" or part ownership in the 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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who works for the brokerage firm. investors buy and sell securities.
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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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certificate of deposit(CD)
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is a deposit that earns a fixed interest rate for a specified lenght of time.
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maturity date
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the date on which an inestment 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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