Savings and Investing Vocab

An IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return.

• Bond

• Mutual Fund

• Stock

A mutual fund is a collection of stocks and bonds of various corporations.

• True

• False

Liquidity

• The possibility of a financial loss

• A fee received or paid doe the use of money

• Refers to how quickly, conveniently, and cost-effectively you can retrieve money from an investment.

A share of a corporation sold to the public

• Stock

• Bond

The principal is the amount originally invested

• True

• False

Pay yourself first means to pay your bills as soon as you get paid

• True

• False

Opportunity Cost

• A fee received or paid for the use of money

• The next best alternative given up when making a financial choice

• The amount of money originally invested.

Risk is the possibility of financial loss or physical harm.

• True

• False

An interest-bearing account where people put money for future use.

• Checking Account

• Savings Account

• Bond Fund

A financial institution is a business that provides money-related services.

• True

• False