Glossary Terms:

Banking is INTEREST-ing!

Glossary terms from:
http://www.econedlink.org/e381


Bank

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

Banking

The industry involved with conducting financial transactions. Also, conducting business with a bank, e.g., maintaining a checking or savings account or obtaining a loan.

Borrow

To receive and use something belonging to somebody else, with the intention of returning or repaying it--often with interest in the case of borrowed money.

Deposit

Money put into a financial account. Also, to place money in a financial account.

Interest

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

Lend

To grant someone the use of something, on condition that the object borrowed or its equivalent will be returned (often with interest, in the case of money).

Money

Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

Purchases

In a credit arrangement, the total amount spent during the billing cycle.

Save

To keep money for future use; to divert money from current spending to a savings account or another form of investment.

Saving

Disposable income (income after taxes) minus consumption spending.

Savings

Money set aside for a future use that is held in easily-accessed accounts, such as savings accounts and certificates of deposit (CDs).

Savings Account

An interest-bearing account (passbook or statement) at a financial institution.

Spend

Use money now to buy goods and services.

Taxes

Compulsory payments to governments by households and businesses.

Withdrawal

The removal of money by a depositor from a financial account.