Ch. 5 Economics Review

Amount originally deposited.

• Original

• Principal

• Starter

• Required Minimum

You can receive full earnings on deposits or withdrawals during this.

• Grace Period

• Compound Interest

• Post-Earnings Period

• Rebate

pay a slightly higher interest rate than traditional savings accounts because banks invest in short-term, highly liquid low-risk assets.

• Simple Interest

• Market Account

• Compound Interest

• Grace Period

the interest charge on borrowing that's calculated using an original principal amount only and an interest rate that never changes.

• Simple Interest

• Compound Interest

• SMART Goal

• Grace Period

interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods

• Simple Interest

• Compound Interest

• SMART Goals

• Grace Period

Money set aside for unplanned events is a(n) ______.

• A. 401(k)

• B. checking account

• C. emergency fund

• D. investment

Money is considered to be a(n) ______.

• A. need and want

• B. limited resource

• C. opportunity cost

• D. interest

The rate of yearly earnings from an account, including compound interest, is the ______.

• A. annual percentage rate

• B. average percentage rate

• C. annual percentage yield

• D. average percentage yield

A passbook is used to record ______.

• A. deposits

• B. insurance checks

• C. loan payments

• D. dividends

You are lending money to the federal government when you purchase a(n) ______.

• A. FDIC insurance policy

• B. money market account

• C. certificate of deposit (CD)

• D. US savings bond