Money Basics
This is the term for a general rise in prices that reduces the purchasing power of money over time.
What is inflation?
This is a plan that helps you track how you earn, spend, and save money.
What is a budget?
Buying this makes you a part-owner of a company.
What is a stock?
This charting tool shows the open, close, high, and low price for a chosen time period.
What is a candlestick?
This plastic card lets you buy now and pay later.
What is a credit card?
This U.S. organization manages money supply and interest rates.
What is the Federal Reserve (the Fed)?
These are the basic things like food and shelter that you must have to live.
What are needs?
This type of trading focuses on buying and selling within a single day.
What is day trading?
This trend is shown when prices continue climbing over time.
What is an uptrend?
These payments fund public services like schools, roads, and parks.
What are taxes?
This income is before taxes and deductions.
What is gross income.
This type of savings acts like a safety net for unexpected expenses such as car repairs or medical bills.
What is an emergency fund?
This word means letting your money work for you by buying assets instead of just saving cash.
What is investing?
This is the price level where a stock often stops falling and bounces back up.
What is support?
This is the “extra” amount you must pay back when borrowing money.
What is interest?
Money only works because people share this belief about its value.
What is trust (or confidence)?
This is the process where money earns interest, and then that interest earns even more interest over time.
What is compounding?
This term describes spreading money across different assets to lower risk.
What is diversification?
This bullish signal happens when the 50-day moving average crosses above the 200-day moving average.
What is a Golden Cross?
This type of income keeps earning money over time, even after the work is finished.
What is passive income?
This type of money has value because people trust it, not because it’s backed by gold or silver.
What is fiat money?
This concept means when you choose one option, you give up the benefits of the other option.
What is opportunity cost?
This term describes betting that the price of a stock will go down instead of up.
What is short selling?
Traders check this to see how many people are buying or selling, which helps confirm if a move is strong.
What is volume?
This happens when prices rise so quickly that money loses value almost overnight.
What is hyperinflation?