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Risk management

TermDefinition
Insurance policy Outlines coverage plans and protects a person against financial loss or damage
Deductible/co-pay Money paid out of your pocket before insurance covers the remaining cost
Premium The amount paid for an insurance policy
Risk The possibility of financial loss or damage
Bond An IOU issued by companies, federal government in exchange for a loan from an interest that will be replaced with a set state of return(amount of time you have to pay back the loan)
Interest Fee that's recieval or paid for the use of money(credit card)
Invest To commit money to gain a profit or earn interest
Pay yourself first(pyf) To save a specific amount from a paycheck for the future (ex:college funds)
Stocks A share of corporation sold to the public
Mutual fund A collection of stocks or bonds of various corporations
Opportunity cost The next best alternative given up when making a financial choice(ex:giving up hot fries for saving money to pay the bills)
Principal The amount of money originally invested
Savings account An interest bearing account where people put money for future use
Created by: Zenobiag
 

 



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