Ch. 5 Economics Review

Front

Amount originally deposited.

Back

Principal

Front

You can receive full earnings on deposits or withdrawals during this.

Back

Grace Period

Front

pay a slightly higher interest rate than traditional savings accounts because banks invest in short-term, highly liquid low-risk assets.

Back

Market Account

Front

the interest charge on borrowing that's calculated using an original principal amount only and an interest rate that never changes.

Back

Simple Interest

Front

interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods

Back

Compound Interest

Front

Money set aside for unplanned events is a(n) ______.

Back

emergency fund

Front

Money is considered to be a(n) ______.

Back

need and want

Front

The rate of yearly earnings from an account, including compound interest, is the ______.

Back

average percentage yield

Front

A passbook is used to record ______.

Back

deposits

Front

You are lending money to the federal government when you purchase a(n) ______.

Back

US savings bond