Chapter 21 vocabulary

Dividend – a portion of a fund or an organization’s profits.
Certificate of deposit – A type of investment in which a person deposits a specific amount of money for a fixed amount of time at a stated interest rate.
401K plan – a type of pension plan in which an employee contributes a specific portion of his or her salary to the plan each year.
Individual retirement account
-Keogh plan – a retirement plan for self-employed peopleSimplified employee pension
-Endorse – to sign one’s name on the back of a check before depositing or cashing it.
Check register – a small booklet that allows one to keep track of money in one’s checking account.
Reconcile – to compare items and then make them agree; used to prefer to a checking account statement and check register.
Credit – a sum of money a person can use before having to reimburse the credit lender.
Application fee – the amount of money charged to apply for a loan.
Down payment – The amount of money paid at the time something is purchased through an installment loan.
Finance charge – Fees that lenders charge but are usually based on the amount of money owed.
Annual percentage rate – The amount of interest for one year, expressed as a percentage.
Credit bureau – an agency that collects information on how promptly people on businesses pay their bills.