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50 Cards in this Set
- Front
- Back
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a series of equal payments made at regular intervals
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annuity
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increase in value over time
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appreciation
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anything an individual or business owns
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asset
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amount owed on a loan or credit card or the amount in a savings or investment account.
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balance
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a peson designated to receive the proceeds of a life insurance policy
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benefiiciary
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itemized summery of probable income and expenses for a given period
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budget
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money coming to an individual or business
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cash flow
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assets pledged to secure a loan
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collateral
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entitles an investor to share any profits, remaining after all other obligations have been met
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common stock
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interest computed on the sum of the original principal and accrued interest
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compound interest
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a loan and bill payment history
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credit report
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number generated that predicts likelyhood that a debt will be repaid
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credit score
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cooperative organization that provides financial services to its members
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credit union
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charges to an account
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debit
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money owed
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debt
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failure to make timly payments
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delinquency
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distribution of investments among several companies to lessen the risk of loss
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diversification
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share of profits paid to a stockholder
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divdend
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ownership interest in an asset after liabilities are deducted
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equity
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the principal amount of a bond,which will be paid off at maturity
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face value
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the price a willing buyer will pay and a willing seller will accept for real or personal property
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fair market value
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the fee a lender charges to originate a loan. The fee based on a percentage of the loan amount; one point is equivalent to 1 percent
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financing fee
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employer-sponsored account that allows employees to save pretax dollars to cover qualified medical and dependent care expenses.
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flexible spending account
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retirement plan to which individuals can contibute each year on a tax-deferred basis
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individual retirement account (IRA)
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sustained increase in the prices of goods and services
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inflation
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fee for the use of money over time. expense to the borrower and revenue to the lender. also money earned on a savings account.
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interest
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percentage charged for a loan, usually a percentage of the amount lent.
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interest rate
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act if using money to make more money
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investing
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the ability to use a small amount of money to attract more funds.
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leverage
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money an individual or organization owes.
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liablity
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creditors claim againced property, to seize the property if a debt is not repaid
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lien
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ease which which an investment an be converted into cash
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liquidity
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fee paid to a company for managing an investment portfolio
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management fee
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amount a seller can expect to receive on the open market for merchandise, services or securities
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market value
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the time when a note bond or other investment option comes due for payment to investors
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maturity
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property
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mortgage
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pool of money managed by an investment company
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mutual fund
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difference between the total assets and total liabilities of an individual
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net worth
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targeting loans to seniors, low income and other people to take advantage of their financial status or lack of financial knowledge
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predatory lending
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lowest interest rate on bank loans, offered to preferred borrowers
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prime rate
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unpaid balance on a loan, not including interest; the amount invested
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principal
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profit made on an investment
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return
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possibility of a loss on an investment
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risk
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service depository insitutuions offer whereby people can deposit their money for future use and earn interest
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savings account
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right to buy or sell a companies stock
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stock option
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phrase referring to money that is not subject to income tax untilll it is withdrawn from an account, such as an individual retirement account or a 401(k) aacount
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tax-deferred
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the period from when a loan is made until it is fully repaid
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term
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a short term investment for a year or less
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treasury bill
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government security with a term of more than 10 years
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treasury bond
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governemtn security with a maturity that can range from two to 10 years
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treasury note
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