Personal Finance Key Terms. Capital Formation Movement of money from households to businesses and...
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Transcript of Personal Finance Key Terms. Capital Formation Movement of money from households to businesses and...
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Personal FinanceKey Terms
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Capital Formation
Movement of money from households to businesses and government through investments and loans.
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Deductible
Amount you pay before the insurance company will help pay.
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Default
Not repaying borrowed money.
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Demand Deposit Account (DDA)
Account whose funds can be removed by writing a check or using a debit card, and without having to gain prior approval from the depository institution.
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Dividend
Check paid to stockholders, usually quarterly, representing a portion of corporate profits.
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Federal Depository Insurance Company (FDIC)
The U.S. government institution that provides deposit insurance on the depositor’s account.
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Federal Reserve System (Fed)
Privately owned, publicly controlled, central bank of the United States.
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Financial Institution
Group that channels savings to investors; includes banks, insurance companies, savings and loan associations, & credit unions.
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Individual Retirement Accounts (IRAs)
Retirement account in the form of a long-term time deposit, with annual contributions not taxed until withdrawn during retirement.
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Interest
Payment made for the use of borrowed money; usually paid at periodic intervals for long-term bonds or loans.
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Maturity
Life of a bond or length of time funds are borrowed.
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Portfolio Diversification
Strategy of holding different investments to protect against risk.
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Savings
The dollars that become available for investors to use when others save.
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Stocks
Certificates of ownership in a corporation; common or preferred stock.
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Frayer Model
AssignmentCreate a frayer model over 1 of the key terms from today. Make sure your name is on the back before you turn it in!
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Quiz Terms
DeductibleDefaultDividendFederal Depository Insurance CompanyFederal Reserve SystemIndividual Retirement AccountInterestMaturitySavingsStocks