Final Review Vocabulary

Question 1

Assets

Answer 1

owned items of value, such as cash, real estate, personal possessions, and investments

Question 2

ATM (automated teller machine)

Answer 2

A computer terminal that allows a withdrawal of cash from an account

Question 3

Budget

Answer 3

a plan for spending and investing money

Question 4

Commercial bank

Answer 4

a for profit institution that offers a full range of financial services, including checking, savings and lending.

Question 5

Common stock

Answer 5

a unit of ownership in a company entitling the stockholder to voting privileges

Question 6

Consumer

Answer 6

a person who purchases and uses goods or services

Question 7

Credit rating

Answer 7

a measure of a person’s ability and willingness to make credit payments on time

Question 8

Credit union

Answer 8

a nonprofit financial institution that is owned by its members and organized for their benefit

Question 9

Demand

Answer 9

the amount consumers are willing and able to buy

Question 10

depository institution

Answer 10

institutions that handle deposited money, such as commercial banks, credit unions, and savings and loan associations.

Question 11

Direct Deposit

Answer 11

an automatic deposit of net pay to an employee’s designated bank account

Question 12

Down Payment

Answer 12

a portion of the total cost of an item that must be paid at the time of purchase

Question 13

Emergency Fund

Answer 13

a savings account that can be accessed quickly to pay for unexpected expenses or emergencies

Question 14

Goal

Answer 14

The things one wants to accomplish

Question 15

Income

Answer 15

cash inflow, including paychecks, allowances, and interest earned

Question 16

Inflation

Answer 16

rise in the level of prices for goods and services over time

Question 17

Interest

Answer 17

The price that is paid for the use of another’s money

Question 18

Liabilities

Answer 18

debt that one owes

Question 19

Liquidity

Answer 19

the ability to easily convert financial assets into cash without loss in value

Question 20

Long term goal

Answer 20

Goal that is 5 years in the future

Question 21

Medium Term Goal

Answer 21

Goal that is between 1-5 years in the future

Question 22

Mutual Fund

Answer 22

an investment in which investors pool their money to buy stocks, bonds, and other securities

Question 23

Non-depository institution

Answer 23

institutions that act as intermediaries between savers and borrowers

Question 24

Opportunity Cost

Answer 24

what is given up in when making one choice instead of another

Question 25

Preferred Stock

Answer 25

a type of stock that gives an owner the advantage of receiving cash dividends before common stockholders receive cash dividends

Question 26

Principal

Answer 26

the original amount of money on deposit

Question 27

Real Estate

Answer 27

land and any structures that are on it, such as a house or any other building that is on it

Question 28

Short Term Goal

Answer 28

goal that is less than a year away

Question 29

Supply

Answer 29

The amount that producers are willing and able to produce

Question 30

Value

Answer 30

the beliefs and principles you consider important, correct, and desirable.