The reasons behind this include security and gaining interest.
What is savings?
100
This is typically the first step of financial planning and begins with a spending and saving plan.
What is a budget?
100
Part ownership in a business.
What are stocks.
100
This is like buying a portion of debt vs. ownership in a corporation.
What is a bond?
100
This is an estimation of the probability of repayment.
What is a credit rating?
200
These require the saver to leave money in the account for a specific amount of time.
What is a time deposit?
200
This occurs when people exchange their money for something of value with the expectation of earning a profit on it in the future.
What is investing?
200
This is the difference between the higher selling price and the lower original purchase price.
What is capital gain?
200
These investments mature and are paid out by the Treasury Department.
What is a government bond?
200
This is a legal declaration of one's inability to repay their financial debts.
What is bankruptcy?
300
This is the amount of money available after taxes have been paid.
What is disposable income?
300
This refers to a person investing in a wide variety of investments.
What is diversification?
300
These individuals link buyers and sellers of stock.
What are stock brokers?
300
These are used to help corporations raise large sums of money that would otherwise be difficult to raise. These are often sold over the New York Stock Exchange and AMEX
What are corporate bonds?
300
This is assessed when customers do not pay their balance in full on a credit card, or within their credit terms.
What is a finance charge?
400
This refers to the ease in which assets can be converted into cash with little or no loss in interest payments.
What is liquidity?
400
These are those payments that remain constant from month to month.
What are fixed expenses?
400
This occurs when an investor sells their stock at a lower price than the original purchase price.
What is a capital loss?
400
This is the amount listed on the bond when issued.
What is face value?
400
This is the agency/business that specializes in collecting financial information about consumers. They provide credit reports.
What is a credit bureau?
500
This is the percentage of people's disposable income that is not spent.
What is the savings rate?
500
This is when investors use money to create a new capital good.
What is a real investment?
500
Occasionally this occurs when a company's board of directors decides to approve a two-for-one stock. Shareholders typically like these because share prices tend to rise afterwards.
What is a stock split?
500
If a company goes out of business, these people are paid before stockholders.
What are bondholders?
500
This process happens when consumers use credit to buy goods and services, which in turn increases demand. Businesses meet these growing expectations, and prices level out for both producers and consumers.