| Question |
 |
|
| Answer |
|
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| Financial Institution |
An organizations that collects funds from the public to place in financial assets such as stocks, bonds, money markets, bank deposits, or loans |
| ATM Card |
A card that allows basic financial services from an automated teller machine. |
| Debit card |
A card that looks like a credit card, but operates like cash; money is immediately subtracted from the user's bank account. |
| Debit |
An amount deducted from a bank account. |
| Credit |
Financial trust extended to a person or business by a lender; a loan. |
| Credit Card |
A card authorizing the holder to buy goods or services. |
| Interest |
Payment for the cost of using someone else's money, usually expressed as an annual percentage rate. |
| Opportunity Cost |
The next best alternative given up when making a choice. |
| Savings account |
Interest-bearing financial institution accounts where people put money aside for future use. |
| Invest |
To commit money in order to gain profit or interest. |
| Stock |
A share of a corporation sold to the public. |
| Simple Interest |
Interest that is paid on the amount deposited. |
| Compound Interest |
Interest that is paid on the amount deposited and the interest earned. |
| With a Credit Card you, |
buy now, pay later. |
| With a Debit Card you, |
buy now, pay now. |
| One disadvantage of using credit is |
it allows for impulse spending. |
| Three variables that affect saving money are |
amount, interest, and time. |
| Bonds |
A bond is an IOU, a record of the loan, and the terms of repayment. |
| Mutual Funds |
An investment company that pools money from shareholders to buy varied stocks and bonds. |
| Futures |
Obligations to buy or sell a specific commodity, such as corn, gold, or Treasury bonds on a specific day for a preset price. |
Science Vocab 147928
