Name:______
Economics – Unit 5 Vocabulary Assignment
Match the term on the left with its definition on the right:
__ / Automobile Insurance / A. / A collection of investments, usually stocks, bonds, and other securities managed by a portfolio manager. The collective investment gains or loses value as a group. Generally the group of items spread the risk of items purchased individually. The net proceeds are passed to the individual investors.__ / Bond / B. / To be at fault, either financially or legally.
__ / Certificate Of Deposit / C. / This term typically refers to money that a person owes to someone or to a financial institution.
__ / Compound Interest / D. / This situation occurs when an entity- a person, business, or government- owes money to another entity.
__ / Credit / E. / A special type of insurance paid to family or primary beneficiary at the time of death of the policy holder.
__ / Credit Worthiness / F. / This is used as protection against financial loss in the event of an accident while driving, or theft.
__ / Debt / G. / Ability to obtain goods and services before payment, or money lent or made available, both with specific guidelines for repayment.
__ / Deductible / H. / The dollar amount of expenses that must be paid out of pocket before an insurer will pay any expenses for loss or liability.
__ / Disability Insurance / I. / This is the economic term that refers to one's total income that is left following the payment of all required taxes.
__ / Disposable Income / J. / This is a contract to repay borrowed money, often issued by a company. This issues financial security for a debt.
__ / Dividend / K. / Certificate of ownership in a company which entitles the shareholder to vote for the board of directors of the corporation.
__ / Health Insurance / L. / This is a total charge that is applied to a person when they borrow money.
__ / Insurance / M. / A form of risk management purchased by a business or individual against a possible financial loss paid in the form of a monthly or annual premium.
__ / Interest / N. / This type of investment account has a specific fixed term/length, fixed interest rate, is insured by the FDIC, and is very low risk to consumers.
__ / Interest Rate / O. / The potential that an investment will lose money.
__ / Investment / P. / This is a measurement as to the likelihood of whether or not a person will default on a loan provided to them by a lending institution.
__ / Liability / Q. / This is used to pay for expenses related to maintaining the wellness of a person. Among countries, there are many varieties of government and privately-sponsored programs.
__ / Life Insurance / R. / This is the name to a type of bank account used by a person who wants to safely store their money over a long period of time, earning interest during that process.
__ / Money Market / S. / This is a method of calculating interest in which the interest is added to the principal each period so that the principal continues to grow throughout the life of the loan or investment. The formula is A = C * (1 + r/100)n where A is the future value, C is the principal, r is the interest rate per period, and n is the number of periods.
__ / Mutual Fund / T. / This is a portion of corporate profits paid to stockholders.
__ / Personal Debt / U. / The amount to be charged for a certain amount of insurance coverage.
__ / Premium / V. / A type of checking account that also earns interest. These accounts generally have a higher minimum balance.
__ / Property Insurance / W. / This specific type of policy is used as protection against financial loss in the event of damage to a structure or land.
__ / Risk / X. / A type of insurance paid to an individual if he/she is injured and is unable to work for a specified length of time.
__ / Savings / Y. / The percentage of a financial loan which is paid as a fee over a period of time.
__ / Stock / Z. / Although it has many definitions, this is generally the act of providing funds to a financial organization for the purposes of making that organization more profitable, while earning a personal profit at the same time.