Econ Ch 6

retirement plan for the self-employed

The length of maturity of a Certificate of Deposit affects its interest rate

Which of the following is purchased at half of its face value?

period of time at which deposits will pay a stated rate of interest

retirement plan allowing people to save certain amount of untaxed income with tax-deferred interest

spreading investments to lower overall risk

setting aside income so it can be used later

Most savings institutions in the U.S. insure deposits up to $250,000

A Money Market deposit account pays relatively high interest rates

increase in value of an asset from time it was bought to time it was sold

Saving of money by someone deprives others of money to invest.

account that pays interest, has no maturity date, and allows funds to be withdrawn without penalty

investing savings in several different types of accounts lowers the overall risk

Corporations are formed by paying dividends

type of time deposits that states amount of deposit, maturity, and rate if interest paid

account that requires savers to keep funds in account for certain periods of time

payment people receive when they let others borrow their money

What is the trade-off for investing in real estate?

An insured account in a local bank is a risky investment

people who have invested in a corporation and own stock

What do Treasury bills, Treasury notes, and Treasury bonds all have in common

Interest earned on contributions to a Roth IRA is

pools funds of many people to buy investments

The return a stockholder receives on amount invested in a company is a

company plan that provides for retirement income for workers

An electronic marketplace for stocks is the over-the-counter market

A major benefit of a private or personal pension plan is deferred federal income tax

people who act as go-betweens for buyers and sellers of stocks and bonds

bonds issued by federal government as way to borrow money

private retirement plan that taxes income before it is saved