JA Finance Unit 2 Vocabulary

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

• Bond

• Interest

• Invest

• Risk

A business that provides money-related services.

• Mutual fund

• Financial Institution

• Savings Account

• Insurance Policy

A fee received or paid for the use of money.

• Bond

• Interest

• Principle

• Risk

To commit money to gain a profit or earn interest.

• Bond

• Opportunity Cost

• Invest

• Stock

A collection of stocks or bonds of various corporations.

• Bond

• Premium

• Savings Account

• Mutual Fund

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

• Opportunity Cost

• Pay Yourself First

• Savings Account

• Mutual Fund

To automatically save a specified amount from a paycheck for future use.

• Opportunity Cost

• Pay Yourself First

• Savings Account

• Deductible/Co-Pay

The amount of money originally invested.

• Principle

• Risk

• Stock

• Premium

The possibility of financial loss or physical harm.

• Principle

• Risk

• Stock

• Opportunity Cost

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

• Pay Yourself First

• Savings Account

• Insurance Policy

• Financial Institution