Economics and personal finance Unit 6

401K

A defined contribution plan that automatically takes out money from an employee's paycheck before income taxes and invests it in mutual funds for purposes of retirement savings

Credit Union

A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.

annuity

A level stream of cash flows for a fixed period of time

mortgage

A lien on real property as security for a debt. A special contract by which the borrower conveys to the lender a security interest in the mortgaged property.

drawer

A person (depositor) who signs a check, ordering a payment to be made.

payee

A person to whom money is paid

third party

A political party organized in opposition to the major parties in a two-party system

mutual funds

A pool of money used by a company to purchase a variety of stocks, bonds or money market instruments. Provides diversification and professional management for investors.

money market account

A type of savings account that pays a higher interest rate because the financial institution invests the money you deposit.

debit

An amount recorded on the left side

credit

An arrangement to receive cash, goods, or services now and pay for them in the future.

blank endorsement

An endorsement consisting only of the endorser's signature

special endorsement

An endorsement indicating a new owner of a check

restrictive endorsement

An endorsement restricting further transfer of a check's ownership

tax-deferred

Earnings on a traditional IRA are

FDIC

Federal Deposit Insurance Corporation

NCUA

National Credit Union Administration

drawee

One ordered to pay the money

payday loan company

Provide small loans in return for a portion of an upcoming paycheck

KEOUGH

What type of retirement is best for SE tax deferred retirement plans intended for self-employed individuals and their employees

Checking account

a bank account against which the depositor can drawn checks payable on demand

Savings account

a bank account that accumulates interest

credit card

a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered

debit card

a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account

certificate of deposit (CD)

a debt instrument issued by a bank

home equity

a loan based on the difference between the current market value of your home and the amount you still owe on the mortgage

safe deposit box

a small, secure storage compartment that you can rent in a bank, usually for $100 a year or less

Savings and Loan Association

a thrift institution that is required by law to make a certain percentage of its loans as home mortgages

overdraft protection

an automatic loan made to you if you write a check for more money than you have in your account

FSLIC

federal savings and loan corporation

IRA

retirement plan

TSA

retirement plan

public Bank

voluntary, is used for whoever needs it