Economics Vocabulary

this kind of income = gross pay - deductions for taxes

a strategy for reducing some risk by selecting a wide variety of investments

A long-term loan to buy real estate (land) and the structures on it is called a _____.

a state or federal not-for-profit institution that provides financial services to its members

purchasing goods or services without considering needs, goals, or consequences

$ set aside for unexpected expenses or for living costs in case of job loss is a/n ____ fund.

risk managemt tool; protects u from losses (w/specific terms & payments); written in a policy

the cost of borrrowing money, or it can also be earnings from lending money

a government fee on business and individual income, activities, or products

money earned from investments & employment

process of calculatg risk/devisg ways 2 minimize loss (ex: buy insurance, diversify investmts)

buying stocks, bonds, & mutual funds to increase ur wealth over time, but with the risk of loss

investmnt tool; it pools the $ of many shareholders & invests it in a diverse mix of securities

buyer agrees to lend $ to a business or govt & promises to pay it bk w/interest @ a set time

a rough calculation of the time or interest rate needed to double the value of an investment

a measure of how likely u r to pay back a loan; you want this # to be high

an investment that represents shares of ownership of the assets & earnings of a corporation

this authorizes the delivery of goods & services in exchange for future payment

the positive difference between total revenue & total expenses of a business or investment

a financial institution deposit account that pays interest & allows withdrawals

plastic card w/access 2 electronic funds transfer (EFT) from an automated teller machine (ATM)

fed govt program; provides retirement, survivor, & disability benefits; funded by income tax

Property that a borrower promises to give up to a lender in case of default is called ___.

something owed, usually measured in dollars

A tax ____ is an expense that a taxpayer can subtract from taxable income.