Fundamentals of Investment and Economics

The amount of money that a savings account is insured for by the FDIC.

A type of investment where the buyer owns a portion of a company.

A type of investment where the buyer is lending money to a company or government, and is promised repayment with interest.

The risk that an investment will lose value.

The idea that as you consume more of something, the satisfaction you get from each additional unit decreases.

Goods that can be used in place of each other, like chicken and ground beef.

A business owned and operated by one person.

A tax where the percentage of income paid in taxes increases as income increases.

A tax where the percentage of income paid in taxes decreases as income increases.

The average income for a worker in a country.

The principle that people who benefit from government services should pay for them.

A banking system where banks hold only a fraction of deposits in reserve and lend out the rest.

The source of money that banks use to make loans.

A situation where the money supply increases without causing inflation.

A central banking system that manages the money supply and provides banking services to banks.

A situation where there is too much money chasing too few goods, leading to rising prices.

A bank that offers a variety of financial services to customers.

A type of investment that pools money from multiple investors to buy a variety of assets, often stocks and bonds.

A type of investment that allows investors to save for retirement in a tax-deferred account.

An investment that is similar to an IRA, but offered by employers.

A business that operates under a license from another company and uses its brand and business model.

A business organization that is legally separate from its owners and has limited liability.

A business organization owned by two or more people who share profits and losses.

A business organization that is owned and operated by one person.

The price of a good or service.

The quantity of a good or service that buyers are willing and able to purchase at a given price.

The quantity of a good or service that sellers are willing and able to offer for sale at a given price.

The situation where the quantity demanded of a good equals the quantity supplied.

The use of money to earn a profit.

A type of investment that is considered low-risk and generally involves deposits in banks or credit unions.