Lesson 2: Introduction to Finance

A professional who provides financial planning and advice on financial matters.

What an amount invested today at a particular interest rate will be worth in the future.

A depository institution where one can keep and borrow money and take care of finances.

The amount of interest based on a principal amount and not on earned interest.

An independent federal agency that serves to supervise and regulate federal credit unions.

Financial institutions that help consumers, businesses, and governments manage money.

Degree of uncertainty of return on an asset; the possibility of loss.

Interest earned on both the principal amount and any interest already earned.

The value of a future cash stream discounted at the appropriate market interest rate.

Money’s potential to grow in value over time.

The central bank of the United States.

An agency of the United States that insures deposits in banks/ thrifts for up to $250,000

The science of the management of money and other assets.

A fee paid for the use of money over time.

A nonprofit financial institution that is privately owned and controlled by its members.

A financial institution that protects persons against the risk of financial loss.

The ability of individuals to make appropriate decisions in managing their personal finances.