A business whose main purpose is to receive deposits and make loans.

Anything owned to which a market value can be assigned.

A card authorizing the user to buy goods and services with funds borrowed from the bank, stored, or other businesses that issued the card.

A method of lowering risk by investing in a wide variety of financial assets.

The established medium of exchange in the United States.

The quantity of goods and services that can be bought with a particular sum of money.

A good that has value in trade, but becomes commodity money when it is used as a medium of exchange.  Example: Gold or silver.

A transaction in which a lender gives money to a borrower, who agrees to repay the money at some point in the future.

Elaborate paper receipts that early banks would give to depositors for precious metals.

Banknotes given in exchange for gold and silver.

Paper money issued without the backing of gold or silver.

Bills and coins circulating throughout the economy.

the total amount of money in the economy.

Deposits in bank checking accounts.

A signed form instructing a bank to pay a specified sum of money to the person named on it.

Consists of M1 and money saved in various kinds of accounts or funds.

Firms that deal mainly with money, as opposed to goods and services.

An institution that brings together sellers and buyers in financial markets.

The ease with which accounts can be converted to cash.

The chance of losing money.

Loans that buy machinery, equipment, and materials or to pay labor costs.

Loans to make major purchases such as a new car or boat.

Loans that are paid back in equal monthly installments, or payments.

A history of a person’s past borrowing along with his or her record of repaying loans on time and in full.

A loan used to buy a house, an office building, land, or other real estate.

Banks keep a fraction of deposits in the reserve and make loans with the rest.

The process of transferring funds from a person’s bank to the store’s bank.

The proportion of a household’s income that its members save each year.

A plan for spending and saving, based on one’s income and estimated expenses.

Investments that give their holders the right to receive some form of return, or profit.

Interest pain not only on the original amount deposited in the savings account, but also on all interest earned by those savings.

A measure of the change in the value of an investment over time.

This rule says to divide the number 72 by the annual rate of return on an investment.

A loan in which the borrower promises to pay the lender a fixed rate of interest over the term of the loan and then repay the principal at the end of the term, or date of maturity.

Securities that are viewed as a bit riskier than Treasury bonds.

Bonds that are riskier to invest in than government bonds.

Bonds that are lower-quality and can be classified as high-yield.

The annual percentage return adjusted for the effects of inflation.

A company that buys and sells stocks and bonds for investors.

People employed to help investors make and carry out investment decisions.

The actual buying and selling of stocks and bonds takes place here.