16 terms

Unit 2 - Saving Investing Risk - Junior Achievement

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Terms in this set (...)

bond
An IOU issued by a company or the federal government in exchange for a loan from an investor (that will be repaid with a set rate of return)
financial institution
A business that provides money related services.
interest
A fee received or paid for the use of money.
invest
to commit money to gain a profit or earn interest
mutual fund
a collection of stocks or bonds of various corporations.
stock
a share of a corporation sold to the public; represents a fractional ownership of a company
savings account
An interest bearing account where people put money for future use
risk
the possibility of financial loss or physical harm
principal
the amount of money originally invested
pay yourself first (PYF)
To automatically save a specified amount from a paycheck for future use
opportunity cost
the next best alternative is given up when making a financial choice
premium
The amount paid for an insurance policy.
insurance policy
A contract that outlines coverage plans and protects a person against financial loss or damage.
deductible / co-pay
money paid to pocket before insurance covers the remaining costs
certificate of deposit (CDs)
Banks offer _____ that offer higher interest rates than savings accounts.
beneficiary
one who benefits from something; a person who is left money or other property in a will or the like