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Personal Finance 7
vocabulary review
| Term | Definition |
|---|---|
| service charge | amount charged borrowers by merchants or banks for servicing or carrying an account or loan |
| share account | a savings account at a credit union; the shares are ownership interest in the credit union |
| simple interest | interest compounded on the principal only |
| standard of living | a measure of an individual's or a family' s quality of life |
| stock | ownership in a corporation; stock can be common or preferred |
| stock exchange | one of the organized stock markets with a centralized trading floor |
| stock market | a market in which the people trade stocks they already own |
| stock split | the division of a stock into a larger number of lower-priced shares |
| stockbroker | a broker who accepts orders to buy and sell stock and then transfers those orders to other people who complete them |
| stop payment order | a request that the bank not cash or process a specific check |
| taxable income | adjusted gross income minus deductions |
| transaction fee | an extra charge for various credit activities such as using an ATM or receiving a cash advance |
| traveler's checks | checks issued by a bank or other institution for a specified amount and signed by the buyer, who my use it as cash by signing it again in the presence of a witness |
| unsecured laon | a loan based on a consumer's promise to pay without savings or other collateral as a guarantee |
| Usury Laws | laws setting maximum interests rates that lenders may charge |
| variable interest rate | an interest rate that changes up or down on a set schedule based on an economic index such as the prime rate |
| yield | the rate of return earned by an investor who holds a security, such as a bond or stock, for a stated period of time |