Money, Banking and Finance Vocab

Dollars and cents

• Currency

• Money

• Certificate of Deposit

• Money Market

Items used to facilitate barter, keep value, and comparison shop

• Money

• Currency

• Principal

• Portfolio

Our bank for banks

• Federal Reserve Bank

• Fractional Reserve Banking

• Monetary Policy

• Fiscal Policy

The Feds attempts to sway the level of inflation and real GDP in our economy

• Monetary Policy

• Fiscal Policy

• Diversification

• Share

The ease with which assets can be converted into cash

• Liquidity

• Return

• Futures

• Options

Banks keep a portion of deposits in-house and loan the rest

• Fractional Reserve Banking

• Federal Reserve Bank

• Certificate of Deposit

• Speculation

When an individual is unable to repay a loan

• Default

• Speculation

• Liquidity

• Interest

The amount one must pay to borrow money from someone else

• Interest

• Portfolio

• Diversification

• Principal

The amount we take out as a loan

• Principal

• Interest

• Portfolio

• Stock

A collection of funds from many individuals and invested in stocks, bonds, and other assets

• Mutual Fund

• Stock

• Stock Split

• Diversification