[Economics] 10.3 – Flashcards
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The amount of money borrowed
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principal
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What is a credit union?
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a cooperative lending institution for a particular group
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How does a bank make most of its profit on its business?
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by paying out less interest on deposits than it earns in interest on loans
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A specific type of loan that is used to buy real estate
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mortgage
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The ability to be used as, or directly converted to, cash
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liquidity
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The money supply of a country is made up of which of the following?
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all the money available in an economy
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The money in checking accounts
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demand deposit
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Failure to pay back a loan
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default
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All the money available in an economy
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money supply
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Person or institution to whom money is owed
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creditor
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The price paid for the use of borrowed money
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interest
