These financial institutes include commercial and savings banks and credit unions. They provide checking and savings accounts and they provide loans
What is a depository institution
100
A demand deposit account where money can be deposited withdrawn an unlimited amount of time with no minimum balance
What is a checking account?
100
This is an account where one cannot touch one's money until they are 59.5 years old. The money is placed into the account before taxes are paid, and is only taxed after retirement.
What is a traditional IRA?
100
This is a piece of ownership of a company
What is a stock?
100
This word refers to how easy it is to access money you've deposited into an account
What is liquidity?
200
A person updates their check registry with all of their charges and checks and adjusts their balance accordingly.
What is balancing or 'reconciling' one's checking account
200
A demand deposit account that pays interest. You may write drafts (checks) at any point but you must maintain a minimum monthly balance.
What is a NOW account?
200
This is an account that cannot be touched until one is 59.5 years old. The money is placed into the account after taxes have been paid. But once you retire, the money is never taxed.
What is a Roth IRA?
200
This is when a company decides to sell ownership rights to others in order to gain some profit.
What is to 'go public' or to be 'publicly traded'? OR What is the initial public offering (IPO)?
200
Why do some accounts pay more interest than others?
The longer you are willing to leave money with the bank without touching it, the more interest they will pay, because they can count on the money being there.
300
This institution regulates banks and carries out the nation's economic policies. They promote price stability and economic growth
What is The Federal Reserve?
300
An account where money can be withdrawn at any time, but doesn't provide check-writing abilities. Pay some interest
What is a savings account?
300
This is a retirement plan that is set up by an employer and the employer makes some contribution to the plan for their employees
What is an employer-sponsored retirement plan?
300
What is the four steps to trading stocks?
An order is submitted to a broker to buy stock; a representative goes to a stock exchange; a buy order is matched with a sell order; confirmation of trade is sent to the broker
300
How does bank deposits provide banks with profit?
Banks loan out the money that's deposited. They charge interest for the loans that they give. That interest provides them profit. (Extra: They reward you buy giving you a small part of the profit they earned off your money: that's the interest the accounts pay)
400
A sustained increase in the general level of prices
What is inflation
400
An agreement where an individual deposits money into an account that they will not touch for a specific length of time. This account pays interest
What is a CD?
400
A pension is a ________________. This means you are guaranteed a certain amount of income when you retire based on the number of years you've worked and your average salary during your peak earning years.
What is a defined benefit plan?
400
A person buys a coupon that represents a certain amount of money. The company keeps that money and pays interest on it for a specific amount of time. During that time the company pays interest on the coupon. Athe end of that proposed time, the company gives back the money represented by that coupon.
What is a bond?
400
These five factors will increase or decrease a stock's price. (You must have at least four)
Weak or strong economy; interest rates; inflation; conditions of the industry; conditions or management of the firm/company
500
__________ involves the raising or lowering of the money supply to achieve some goal in balancing the economy.
What is monetary policy
500
This has check-writing privilegesbut limits the amount of check you can write a month. It earns interest and you must maintain a minimum balance
What is a money market deposit account?
500
A 401K is an example of a _____________. It is a plan where the employee makes deposits to an account for retirement. They decide how much and how often they will contribute. Employers will usually match contributions to some limit.
What is a defined-contribution plan?
500
This allows a person to invest in diverse companies and industries with a relatively small amount of money.
What is a mutual fund?
500
This fefers to how often interest is added. Due to this affect the longer, money is kept into an account, the more money will be earned in the long run.