Interest
This is the original amount of money you save, invest, or borrow.
What is principal?
This is the rate at which prices for goods and services rise over time.
What is inflation?
High-yield savings accounts are typically offered by online banks or these institutions.
What are credit unions?
This investment represents partial ownership in a company.
What is a stock?
The most famous example of Crypto.
What is Bitcoin?
This type of interest is earned on both the original amount and any interest that has already been added.
What is compound interest?
When inflation rises your purchasing power does what?
What is falls or decreases?
This savings tool "locks your money" in for a set period in exchange for a guaranteed interest rate.
What is a certificate of deposit, or CD?
This investment pools money from many investors to buy a diversified portfolio of stocks, bonds, or other securities managed by a professional.
What is a mutual fund?
This person is the 16th Chair of the Federal Reserve.
Who is Jerome Powell?
Using the Rule of 72, at a 6% interest rate, this is about how many years it will take money to double.
What is 12 years?
This measure tracks the average change over time in prices paid by consumers based on a basket of common goods.
What is the Consumer Price Index?
These U.S. government bonds are designed to protect your money from inflation.
What are Treasury Inflation-Protected Securities, or TIPS?
This investment is similar to a mutual fund, but it trades on a stock exchange like an individual stock.
What is an Exchange-Traded Fund or ETF?
Crypto prices can crash quickly, scams are common, and accounts can be hacked. These are examples of this.
What are risks of crypto?
Student loans are similar to credit cards because both involve borrowing money and paying this over time.
What is interest?
High transport costs combined with higher tariffs can increase prices in these two everyday consumer categories.
What are retail items and clothing?
TIPS are considered low risk because they are backed by this.
What is the U.S. government?
This strategy spread investments across different asset classes, industries, and regions to reduce risk.
What is diversification?
A $500 credit card balance grows to $510 after one month and $520.20 after two months because the student does not pay the full balance. This is because interest is charged on this amount each month.
What is the remaining unpaid balance?
CPI increased to what percent last month relative to the prior year.
What is 4.2%?
The trade-off with CDs is that they may offer more interest, but less of this.
What is liquidity?
This investment pays periodic interest and repays the principal at maturity.
What is a bond?
When the Fed raises the Federal Funds Rate to lower inflation, this is called this type of monetary policy.
What is contractionary monetary policy?