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MMA Unit 6 Savings

MMA Unit 6 Savings a

TermDefinition
Safety deposit box an individually secured container—usually a metal box—that stays in the safe or vault of a bank.
Savings Account a bank account similar to a checking account, except it accrues interest and there may be a cap on the number of withdrawals you can make in a month
Deposit adding money to an account
Withdrawal taking money out of an account
Principal the original loan or investment amount
Interest a percentage amount of a loan amount that must be repaid along with the loan amount
Simple Interest interest that is calculated on just the loan principal, not including any accrued interest
Annual Percentage Rate (APR) the yearly interest rate for a loan
Certificate of Deposit a certificate issued by a bank to a person depositing money for a specified length of time at a simple interest rate.
Bond a promise by a company or government to repay principal at a specific date and to pay simple interest at a regular interval.
Compound Interest interest that is calculated on the total amount owed, including previously accrued interest
Share a unit of ownership of a business
Shareholder an owner of shares in a company
Stock the shares in a business; in other words, the stock in a business is divided into individual shares
Dividends a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
Stock Market the buying and selling of shares, usually through public exchanges
Mutual Fund a company that brings together money from many people and invests it in stocks, bonds or other assets.
Created by: meminot
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