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Cards In This Set
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Why is compound interest better for the saver than simple interest?
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Because you earn interest on past interest, so in the end you earn more money
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What is simple interest?
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Interest payment that is computed as a percentage of the original deposit amount
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The original amount of an investment
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Principal
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Coupon rate
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The rate of return on a bond
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A fee earned for the use of money over time
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Interest
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What savings account is based on a fixed amount of money for a fixed period of time at a fixed interest rate?
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Certificate of deposit
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What are bonds, and other investments where you pool money with other investors
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Mutual funds
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Who issues a treasury bond?
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US government/ treasury
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What is the security of a US treasury bond?
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More than 10 years
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Represents a piece of ownership in a publicly traded company
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Stock
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Represents a loan to a government entity or corporation
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Bond
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What does FDIC stand for?
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Federal Deposit Insurance Corporation
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What does the FDIC protect against?
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Loss of insured deposits in an insured bank or savings and loan if the bank fails
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Ownership in a company
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Equity
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The portion of the company's profits paid to stock owners
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Dividend
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