Glossary Terms:

Loan Amortization - Mortgage

Glossary terms from:
http://www.econedlink.org/e1022


Bank

A financial institution that provides various products and services to its customers, including checking and savings accounts, loans and currency exchange.

Borrower

An individual who has received and used something belonging to somebody else, with the intention of returning or repaying it--often with interest in the case of borrowed money.

Consumers

People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.

Debt

Money owed to someone else. Also the state or condition of owing money. Can be individual, corporate or government debt.

Decision

A conclusion reached after considering alternatives and their results.

Finance Charge

The total cost of credit, including interest and transaction fees.

Interest

Money paid regularly, at a particular rate, for the use of borrowed money.

Interest Rate

The price paid for using someone else's money, expressed as a percentage of the amount borrowed.

Mortgage

A special type of loan for the purchase of a house or other real estate.

Principal

An original amount of money invested or lent.

Regulation

Economic regulation is the prescription of price and output for a specific industry, often a natural monopoly. Social regulation is the prescription of health, safety, performance, environmental, output and job standards across several industries.

Resources

The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.

Truth in Lending Act

A federal law that requires creditors to disclose finance charges and interest rates in a standard, uniform manner.

Wants

Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.