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MMA Unit 6 Savings a

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