Vocabulary Flashcard Sheet 1

Front

What is the possibility of loss or injury, often referring to the chance of financial loss in investments?

Back

Risk

Front

What are organizations such as banks, credit unions, and insurance companies that provide financial services called?

Back

Financial Institutions

Front

What is money set aside, typically in a bank or other account, for future use?

Back

Savings

Front

What is the cost of borrowing money, or the payment received for lending it, usually expressed as a percentage?

Back

Interest

Front

Who are individuals or institutions to whom money is owed?

Back

Creditors

Front

What is a loan used to purchase real estate, where the property serves as collateral?

Back

Mortgage

Front

What is the legal process by which a lender takes possession of property after the borrower fails to make payments?

Back

Foreclosure

Front

What is the original amount of money borrowed or invested, not including interest or earnings?

Back

Principal

Front

What is the percentage charged or earned on borrowed or invested money?

Back

Interest Rate

Front

What is a savings certificate with a fixed maturity date and interest rate, offered by banks?

Back

Certificate of Deposit