The principle stating that money today is worth more than the same amount in the future.

(a)  

The extra amount paid or earned only on the original principal.

(a)  

The interest calculated on both the principal and previously earned interest.

(a)  

The formula used to compute simple interest.

(a)  

The market value of things like stocks or bonds.

(a)  

The theory that interest rate is determined by the balance between savings and investment.

(a)  

The theory proposed by John Maynard Keynes that explains people’s preference to hold money for flexibility.

(a)  

The theory stating that interest rates depend on the supply and demand for funds in the financial market.

(a)  

The type of asset that represents ownership in a company and potential profit from its growth.

(a)  

The loss of potential gain when one alternative is chosen over another.

(a)  

The continuous rise in prices that decreases the value of money.

(a)  

The unpredictability of the future that increases the value of money today.

(a)  

The situation where it is hard to buy or sell assets, causing price drops.

(a)  

The condition where asset prices rise too high due to overbuying, then suddenly crash.

(a)  

The additional return investors expect for taking higher risks.

(a)  

The factor that increases asset prices when borrowing becomes cheaper.

(a)  

The condition where optimism or fear among investors influences market prices.

(a)  

The government or central bank action that can influence interest rates and asset prices.

(a)  

The interest that is commonly used in short-term loans, car loans, or personal lending where payments are fixed.

(a)