Please define words
Saving account
Money Market account
Bonds
Stocks
Mutual Funds
Opportunity Cost
Financial Institution
Interest
Principal
Fixed Cost
Variable Cost
Deductible/Co pay
High low
FAFSA
Income Taxes
2 answers
define these words
Saving account: A savings account is a type of bank account that allows individuals to deposit and store their money in a secure place. It typically offers a lower interest rate compared to other investment options, but it provides easy access to funds and is considered a safe way to save money.
Money Market account: A money market account is a type of savings account offered by banks or credit unions. It functions similarly to a traditional savings account but typically offers a higher interest rate. Money market accounts may have certain restrictions on withdrawals and require a higher minimum balance.
Bonds: Bonds are debt securities that represent a loan made by an investor to a government or company. In exchange for buying a bond, the investor receives periodic interest payments and the return of the principal amount at the maturity date. It is a way for governments or companies to raise capital.
Stocks: Stocks, also known as shares or equities, represent ownership in a company or corporation. When individuals buy stocks, they become shareholders and have the potential to earn profits through dividends or by selling the shares at a higher price.
Mutual Funds: Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They are managed by professional fund managers who make investment decisions on behalf of the investors based on the fund's objectives.
Opportunity Cost: Opportunity cost refers to the potential benefits or opportunities that are given up or sacrificed when choosing one option over another. It is the cost of the next best alternative forgone.
Financial Institution: A financial institution is a company that provides various financial services to individuals, businesses, and organizations. This includes banks, credit unions, investment firms, insurance companies, and mortgage lenders.
Interest: Interest is the cost of borrowing money or the return on an investment. When individuals borrow money, they are charged interest by the lender. On the other hand, when individuals invest their money, they earn interest as a form of payment for lending their funds to the borrower.
Principal: Principal refers to the original amount of money invested or borrowed, excluding any interest or earnings accumulated.
Fixed Cost: Fixed costs are expenses that remain constant regardless of the level of production or sales. These expenses do not change over the short term, such as rent, insurance, or salaries.
Variable Cost: Variable costs are expenses that fluctuate depending on the level of production or sales. These costs increase or decrease in direct proportion to the production or sales volume, such as raw materials, utilities, or commissions.
Deductible/Co pay: A deductible is the amount an individual must pay out of pocket before their insurance coverage kicks in. A copay is a fixed amount an insured person pays for a specific healthcare service or medication, as determined by their insurance plan.
High low: "High low" is not a specific financial term. It could refer to the concept of finding the highest and lowest values within a given data set or could have different meanings depending on the specific context.
FAFSA: FAFSA stands for Free Application for Federal Student Aid. It is a form that students in the United States must fill out to determine eligibility for federal financial aid programs, such as grants, scholarships, and loans.
Income Taxes: Income taxes are taxes imposed by governments on individuals or businesses based on their income or profits. They are usually calculated as a percentage of the taxpayer's earnings and are used to fund public services and government operations.
Money Market account: A money market account is a type of savings account offered by banks or credit unions. It functions similarly to a traditional savings account but typically offers a higher interest rate. Money market accounts may have certain restrictions on withdrawals and require a higher minimum balance.
Bonds: Bonds are debt securities that represent a loan made by an investor to a government or company. In exchange for buying a bond, the investor receives periodic interest payments and the return of the principal amount at the maturity date. It is a way for governments or companies to raise capital.
Stocks: Stocks, also known as shares or equities, represent ownership in a company or corporation. When individuals buy stocks, they become shareholders and have the potential to earn profits through dividends or by selling the shares at a higher price.
Mutual Funds: Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They are managed by professional fund managers who make investment decisions on behalf of the investors based on the fund's objectives.
Opportunity Cost: Opportunity cost refers to the potential benefits or opportunities that are given up or sacrificed when choosing one option over another. It is the cost of the next best alternative forgone.
Financial Institution: A financial institution is a company that provides various financial services to individuals, businesses, and organizations. This includes banks, credit unions, investment firms, insurance companies, and mortgage lenders.
Interest: Interest is the cost of borrowing money or the return on an investment. When individuals borrow money, they are charged interest by the lender. On the other hand, when individuals invest their money, they earn interest as a form of payment for lending their funds to the borrower.
Principal: Principal refers to the original amount of money invested or borrowed, excluding any interest or earnings accumulated.
Fixed Cost: Fixed costs are expenses that remain constant regardless of the level of production or sales. These expenses do not change over the short term, such as rent, insurance, or salaries.
Variable Cost: Variable costs are expenses that fluctuate depending on the level of production or sales. These costs increase or decrease in direct proportion to the production or sales volume, such as raw materials, utilities, or commissions.
Deductible/Co pay: A deductible is the amount an individual must pay out of pocket before their insurance coverage kicks in. A copay is a fixed amount an insured person pays for a specific healthcare service or medication, as determined by their insurance plan.
High low: "High low" is not a specific financial term. It could refer to the concept of finding the highest and lowest values within a given data set or could have different meanings depending on the specific context.
FAFSA: FAFSA stands for Free Application for Federal Student Aid. It is a form that students in the United States must fill out to determine eligibility for federal financial aid programs, such as grants, scholarships, and loans.
Income Taxes: Income taxes are taxes imposed by governments on individuals or businesses based on their income or profits. They are usually calculated as a percentage of the taxpayer's earnings and are used to fund public services and government operations.