1. Personal Finance Key Terms

2. Capital Formation Movement of money from households to businesses and government through investments and loans.

3. Deductible Amount you pay before the insurance company will help pay.

4. Default Not repaying borrowed money.

5. Demand Deposit Account (DDA) Account whose funds can be removed by writing a check or using a debit card, and without having to gain prior approval from the depository institution.

6. Dividend Check paid to stockholders, usually quarterly, representing a portion of corporate profits.

7. Federal Depository Insurance Company (FDIC) The U.S. government institution that provides deposit insurance on the depositor’s account.

8. Federal Reserve System (Fed) Privately owned, publicly controlled, central bank of the United States.

9. Financial Institution Group that channels savings to investors; includes banks, insurance companies, savings and loan associations, & credit unions.

10. Individual Retirement Accounts (IRAs) Retirement account in the form of a long- term time deposit, with annual contributions not taxed until withdrawn during retirement.

11. Interest Payment made for the use of borrowed money; usually paid at periodic intervals for long-term bonds or loans.

12. Maturity Life of a bond or length of time funds are borrowed.

13. Portfolio Diversification Strategy of holding different investments to protect against risk.

14. Savings The dollars that become available for investors to use when others save.

15. Stocks Certificates of ownership in a corporation; common or preferred stock.

16. Frayer Model Assignment Create a frayer model over 1 of the key terms from today. Make sure your name is on the back before you turn it in!

17. Quiz Terms Deductible Default Dividend Federal Depository Insurance Company Federal Reserve System Individual Retirement Account Interest Maturity Savings Stocks