Tax
A tax credit allowed for each child in a household.
child tax credit
Financial institutions that accept deposits (which are insured up to a maximum level) from individuals and provide loans.
depository institutions
With respect to a loan, the life or duration of the loan.
maturity
Long-term debt securities issued by government agencies or corporations.
a fixed rate, a variable rate, or a tiered rate.
A credit used to reduce tax liability for low-income taxpayers.
earned income credit
Financial institutions that do not offer federally insured deposit accounts, but provide various other financial services.
nondepository institutions
Credit cards, such as gold cards or platinum cards, issued by a financial institution to individuals who have an exceptional credit standing.
prestige cards
Long-term debt securities issued by the U.S. Treasury.
The interest that you must pay as a result of using credit.
finance charge
A government health insurance program that covers people mostly over age 65 and provides payments to health care providers in the case of illness.
Medicare
Nondepository institutions that facilitate the purchase or sale of securities by firms or individuals by providing investment banking services and brokerage services.
securities firms
Interest on a loan computed as a percentage of the existing loan amount (or principal).
simple interest
For a bond, its face value, or the amount returned to the investor at the maturity date when the bond is due.
The percentage of credit that must be paid as interest on an annual basis.
simple interest rate
A fixed amount that can be deducted from adjusted gross income to determine taxable income.
a return on an investment that is guaranteed for a specified period.
risk-free rate
A method of determining the monthly payment on a loan; involves calculating interest that must be paid on the loan amount, adding together the interest and loan principal, and dividing by the number of payments.
add-on interest method
Risk that the borrower of funds will not repay the creditors.
The simple interest rate including any fees charged by the creditor.
annual percentage rate (APR)
Specific expenses that can be deducted to reduce taxable income.
When you write a check, your checking account balance is not reduced until the check is cashed by the recipient and the check clears. The time from when you write a check until your checking account balance is reduced is referred to as ...........
The market value of a home minus the debt owed on the home.
equity of a home
The extra yield required by investors to compensate for the risk of default.
Credit cards typically allow a ......... period in which you are not charged any interest on your purchases.