Financial Terms and Definitions

A Savings Account is:

• a type of bank account that allows you to save money and earn interest

• a loan provided by the bank

• a credit card service

• an investment in the stock market

A Retirement Plan is:

• a financial arrangement to provide income after retirement

• a type of insurance policy

• a short-term savings account

• a government bond

Retirement savings are:

• Funds set aside for use after retirement

• A type of loan for retirees

• A government grant for retirees

• An insurance policy for retirees

What is Inflation?

• A decrease in the general price level of goods and services

• An increase in the general price level of goods and services

• A measure of economic growth

• A type of investment strategy

An investment is:

• a way to spend money on luxury items.

• a method to save money in a bank account.

• an asset or item acquired with the goal of generating income or appreciation.

• a type of loan taken from a bank.

A security is a financial instrument that represents:

• ownership in a corporation (stock)

• a creditor relationship with a governmental body or a corporation (bond)

• rights to ownership as represented by an option

• all of the above

What are Stocks?

• A type of investment representing ownership in a company

• A type of bond issued by governments

• A form of currency used in international trade

• A type of insurance policy

Bonds are a type of:

• Equity

• Debt

• Commodity

• Currency

A Certificate of Deposit (CD) is:

• a type of savings account with a fixed interest rate and fixed date of withdrawal.

• a type of loan offered by banks to individuals.

• a credit card with a high interest rate.

• an investment in the stock market.

A consumer is:

• A person who buys goods and services

• A person who sells goods and services

• A person who produces goods and services

• A person who distributes goods and services