Answer: 1.Risk.- chance you take that investment will or will not work out; also can be chance you take in anything like possibility of being injured or getting sick.
2. Reserves .- what the bank holds on to - does not loan out
.
3. Credit Union
.- non-profit member run financial institution.
4. Bonds.- IOUs from government - buy a piece of paper from government with promised interest rate - money goes to help government with task or project - most famous ones are for war
5- Mutual funds.- money pooled or collected from multiple investors to purchase securities or investments.
6.- Portfolio
.- list of investments.
7.- Purchasing Power
.- strength or value of money - affects how much you can buy.
8. Credit.- act of or status from borrowing money or taking out loan from financial institution (not from friends or family).
9.- Creditworthy.- deemed acceptable by bankers - viewed as low risk in borrowing money
.
10. Installment Plan.- breaking something into multiple payments so that large sum not due at once
11. Interest.- percentage charged on top of a loan.
12. Insurance.- coverage for 'what if' - helps split risks among multiple people
13. Deductible
.- what must be paid out of pocket before insurance company will cover costs.
14. Claim
.- when you explain to insurance company about what happened.
15. Premium
.- Monthly payment to have insurance coverage.
