Money Management #20

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.