Financial Literacy Vocabulary Flashcard

Front

What is a bond?

Back

An IOU issued by a company or municipality.

Front

Opportunity cost refers to:

Back

The next best alternative given up when making a financial decision.

Front

A financial institution is:

Back

A business that provides money-related services.

Front

To pay yourself first means to:

Back

Automatically save a portion of your paycheck.

Front

The principal is:

Back

The amount of money originally invested.

Front

Risk

Back

The possibility of financial loss.

Front

To invest means to:

Back

Commit money to gain a profit.

Front

What is a mutual fund?

Back

A collection of stocks or bonds from various corporations.

Front

A savings account is:

Back

An interest-bearing account for future use.

Front

A stock is:

Back

A share of a corporation sold to the public.