Economics Chapter 8 Section 3-5 – Flashcards
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Bank
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a business that receives deposits and makes loans.
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Asset
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anything owned to which a market value can be assigned.
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Credit Card
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an arrangement that allows a person to buy something now with borrowed money and pay for it later or over time.
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Debit Card
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allows you to access the money in your bank account.
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Saving
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setting aside a portion.
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Interest
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money paid periodically in return for the use of borrowed funds.
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Principal
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the amount of money actually borrowed from a loan.
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Investing
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involves using the money you have saved to earn even more money.
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Diversification
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investing in a wide variety of financial assets.
