Pers. Fin. P. 7 Part 3 - Saving
Terms in this set (9)
to buy something (ie. stock) with the expectation of making a profit
a measure of how quickly assets can be converted into cash
Rate of return
The gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost.
determined by multiplying the interest rate by the principal by the number of periods. *You only earn interest on the initial principal.
interest added to the principal of a deposit or loan so that the added interest also earns interest from then on.
Money Market Account
An interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability. Offers the benefits of both a checking and savings account. Usually pays a higher interest but requires a higher balance be maintained.
CD - Certificate of Deposit
a certificate issued by a bank to a person depositing money for a specified length of time.
a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.
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