Money Management #20
For #20 I needed to define some terms.
Savings account-
a bank account on which interest is paid, traditionally one for which a bankbook is used to record deposits, withdrawals, and interest payments.
Checking account-
a bank deposit against which checks can be drawn by the depositor.
Certificate of deposit-
A certificate of deposit is a record of money invested in a bank that, in return, pays interest.
Stock-
a supply of goods kept on hand for sale to customers by a merchant, distributor, manufacturer, etc.; inventory.
Shares in a mutual fund-
An investor who shares a mutual fund with other investors.
Charge card-
an identification card used to make purchases on a charge account
Credit card-
a card that identifies a person as entitled to have food, merchandise, services, etc., billed on a charge account.
Debit card-
a plastic card that resembles a credit card but functions like a check and through which payments for purchases or services are made electronically to the bank accounts of participating retailing establishments directly from those of card holders.
ATM-
automated teller machine
U.S. savings bond-
U.S. savings bonds are simple financial savings instruments that can be
purchased at a bank, which earn interest over a designated amount of
time.
Traditional IRA-
is an individual retirement arrangement (IRA), established in the United States by the Employee Retirement Income Security Act of 1974
Roth IRA-
an individual retirement account in which investments are made with taxable dollars, but earnings are tax-free and withdrawals are tax-free after age 59 1/2.
