AP Macroeconomics Unit 4

The cost of borrowed money, usually expressed as a percentage.

• interest
• savings plan
• scarce
• purchase

Amount of money originally borrowed

• Mortgage
• Principal 
• Annual percentage rate (APR)
• Finance company

What does CD stand for when talking about investments?

• Calculated Dividend
• Certificate of Deposit
• Central Dollar
• Current Deposit

A mutual fund allows investments to be ___________.

• Secured
• Guaranteed
• Diversified
• Minimal

Because mutual funds spread your investment around in multiple stocks and bonds, they are a great example of this term

• diversification
• overdraft
• debt
• beneficiary

This term refers to the original amount of a loan OR the original amount of money invested. 

• Principal
• Interest
• Rebate
• Fixed Rate

This is just a savings account with a slightly higher interest rate because the saver commits to a longer saving period for a set amount deposited.

• C.D.
• debt
• beneficiary

This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.

• compound interest
• emergency fund
• APR
• debt

The availability of money; how quickly you can convert it into cash in your hand is its _______.

• diversity
• liquidity
• yield
• gratuity

Something of value used to secure a loan 

• Finance charge
• Unsecured loan
• Collateral
• Interest