Vocabulary

bank  A business whose main purpose is to receive deposits and make loans.

assets  Anything owned to which a market value can be assigned.

credit card  A card authorizing the user to buy goods and services with funds borrowed from the bank. store. or other business that issued the card.

debit card  A card authorizing the user to access his or her own funds on deposit in a bank account. A debit card can be used to buy goods and services or to withdraw money directly from an account.

saving  Setting aside a portion of income for use in the future.

interest  Aperiodic payment for the use of borrowed funds. When calculated as a simple percentage of the amount borrowed, this payment is also known as simple interest.

principal  The amount of money borrowed. or the amount of money still owed on a loan. apart from the interest.

investing  Using money with the intention of making a financial gain.

diversification  A method of lowering risk by investing in a wide variety of financial assets.



Chapter Sections

8.1 – Introduction
8.2 – What Makes Money...Money?
8.3 – How Does the Banking System Work?
8.4 – How Is Saving Important to the Economy — And to You
8.5 – How Do Americans Invest Their Savings?
Summary


Chapter 8 - Textbook Scan