AP Macroeconomics Unit 4

The cost of borrowed money, usually expressed as a percentage.

• interest
• savings plan
• scarce
• purchase

What does CD stand for when talking about investments?

• Calculated Dividend
• Certificate of Deposit
• Central Dollar
• Current Deposit

This term refers to the original amount of a loan OR the original amount of money invested. 

• Principal
• Interest
• Rebate
• Fixed Rate

This is just a savings account with a slightly higher interest rate because the saver commits to a longer saving period for a set amount deposited.

• C.D.
• debt
• beneficiary

This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.

• compound interest
• emergency fund
• APR
• debt

The availability of money; how quickly you can convert it into cash in your hand is its _______.

• diversity
• liquidity
• yield
• gratuity

Amount of money a borrower must pay for the usage of someone else’s money

• Finance charge
• Unsecured loan
• Collateral 
• Interest

Which bank account earns you the most interest?

• Savings
• Checking
• Certificate of Deposit

Who pays interest on a loan?

• The borrower
• The bank

Who pays interest when you deposit money in the bank?

• The depositor
• The bank