Lessons 1 & 2 Vocab

Front

Buying something or borrowing money with a promise to repay; in banking, it refers to money that increases an account balance.

Back

credit

Front

Interest on principal + previously earned interest.

Back

compound interest

Front

Depository institution for keeping and borrowing money.

Back

bank

Front

Money's potential to grow over time; the relationship between time, money, return rate, and earnings growth.

Back

time value of money

Front

A fee for using money over time; the cost of borrowing, often a percentage of the amount borrowed.

Back

interest

Front

Financial institution protecting against financial loss.

Back

insurance company

Front

Central bank of the U.S.

Back

The Federal Reserve

Front

A nonprofit financial institution owned by its members, offering depository and lending services.

Back

credit union

Front

Ability to make sound personal finance decisions.

Back

financial literacy

Front

Current medium of exchange: coins & banknotes.

Back

money