Banking & Money
The place where money is stored, loaned, and managed.
What is a bank?
The three-digit number that represents a person's creditworthiness
What is a credit score?
The term for a share of ownership in a company.
What is a stock?
The term for setting money aside for future use instead of spending it now.
What is saving?
The type of account used for everyday expenses and bill payments.
What is a checking account?
The name for money created and controlled by a country’s government.
What is fiat currency?
The fee charged by lenders for borrowing money.
What is interest?
The U.S. regulatory body overseeing stock trading
What is the Securities and Exchange Commission (SEC)?
The process of spreading investments to reduce risk.
What is diversification?
A financial tool that allows consumers to borrow money up to a limit.
What is a credit card?
This organization is known as "the central bank of the United States."
What is the Federal Reserve?
A loan used to purchase real estate, typically paid back over 15-30 years.
What is a mortgage?
The term for when a stock price increases significantly in a short period.
What is a bull market?
The name for a retirement savings plan offered by employers.
What is a 401(k)?
The document banks provide to show deposits, withdrawals, and balances.
What is a bank statement?
The rule used to estimate how long it takes for an investment to double.
What is the Rule of 72?
This law ensures consumers understand the cost of borrowing money.
What is the Truth in Lending Act?
The most well-known U.S. stock market index that includes 30 major companies.
What is the Dow Jones Industrial Average?
The type of interest that earns interest on both principal and previous interest.
What is compound interest?
This service protects individuals from financial loss due to unexpected events.
What is insurance?
The term for money banks are required to keep on hand instead of lending.
What are reserve requirements?
The percentage of credit you are using compared to your total limit.
What is credit utilization?
The name of the process when a private company becomes publicly traded.
What is an Initial Public Offering (IPO)?
A type of investment that pools money from multiple investors to buy stocks and bonds.
What is a mutual fund?
The type of bank account that offers interest in exchange for keeping money in it.
What is a savings account?