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Personal Finance 7

vocabulary review

TermDefinition
service charge amount charged borrowers by merchants or banks for servicing or carrying an account or loan
share account a savings account at a credit union; the shares are ownership interest in the credit union
simple interest interest compounded on the principal only
standard of living a measure of an individual's or a family' s quality of life
stock ownership in a corporation; stock can be common or preferred
stock exchange one of the organized stock markets with a centralized trading floor
stock market a market in which the people trade stocks they already own
stock split the division of a stock into a larger number of lower-priced shares
stockbroker a broker who accepts orders to buy and sell stock and then transfers those orders to other people who complete them
stop payment order a request that the bank not cash or process a specific check
taxable income adjusted gross income minus deductions
transaction fee an extra charge for various credit activities such as using an ATM or receiving a cash advance
traveler's checks checks issued by a bank or other institution for a specified amount and signed by the buyer, who my use it as cash by signing it again in the presence of a witness
unsecured laon a loan based on a consumer's promise to pay without savings or other collateral as a guarantee
Usury Laws laws setting maximum interests rates that lenders may charge
variable interest rate an interest rate that changes up or down on a set schedule based on an economic index such as the prime rate
yield the rate of return earned by an investor who holds a security, such as a bond or stock, for a stated period of time
Created by: SusieQ60
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