econ vocab quiz 1 test 3

an investing tool used to save for retirement allows individuals tax breaks; consists of traditional and Roth

• IRA

• budget

• stock

• financial intermediary institution

interest paid only on principal

• simple interest

• compound interest

• budget

• net worth

interest you earn, not only the money you put into an account but also all the interest you have possibly built up

• compound interest

• simple interest

• social security

• IRA

an estimate or future revenue and expenses

• budget

• bond

• stock

• net worth

a certificate of ownership in a corporation

• stock

• bond

• budget

• net worth

a formal contract issued by a corporation or other entity that includes a promise to repay borrowed money with interest at fixed intervals

• bond

• stock

• budget

• IRA

an institution that helps channel funds from savers to borrowers

• financial intermediary

• budget

• simple interest

• compound interest

total assets minus total liabilities

• net worth

• budget

• stock

• mortgage

an organization that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets

• mutual fund

• social security

• bond

• stock

the total amount of income earned during a pay period before payroll withholdings are taken out

• gross pay

• net pay

• mutual fund

• simple interest