front 1 Depository institution | back 1 A financial institution that accepts deposits from the public |
front 2 Compound interest | back 2 interest that is calculated on the balance rather than the principal |
front 3 asset allocation | back 3 how assets are divided between stocks, bonds, real estate, and cash |
front 4 Comercial bank | back 4 for-profit largest type of depository institution |
front 5 Saving institution | back 5 for-profit or financial cooperative depository institution that specializes in consumer mortgage lending |
front 6 Credit onion | back 6 not-for-profit depository institution that is owned and operated by members |
front 7 Liquidity | back 7 how quickly you can turn your money into cash |
front 8 Checking account | back 8 very liquid account that allows for numerous withdrawals and unlimited deposits |
front 9 High-yield checking accounts | back 9 offers higher interest rates than savings accounts |
front 10 Saving account | back 10 account that pays a higher interest rate than checking accounts and has limits on certain transactions and withdrawals |
front 11 Money Market | back 11 pays higher interest rates than standard savings accounts and offers limited checking account services |
front 12 CDs | back 12 have a fixed interest rate and a fixed date of withdrawal (maturity date) |
front 13 Maturity date | back 13 the date on which the life of a transaction or financial instrument ends |
front 14 Emergency founds | back 14 an amount equal to 3-6 months of expenses set aside in case of emergency |
front 15 Diversification | back 15 having a wide variety of investments within a portfolio. |
front 16 Diversity | back 16 holding different types of assets. "Don't put your eggs in one basket." |
front 17 Return | back 17 Money made or lost on an investment |
front 18 Stock | back 18 ownership in a company |
front 19 Dividens | back 19 sum of money paid regularly to its shareholders |
front 20 Bonds | back 20 a fixed income investment that provides regular interest payments and the principal upon maturity |
front 21 Mutual fonds | back 21 drastically reduces unsystematic risk through one fund that is made up of potentially hundreds or more of individual securities |