Unit 2 Study Guide

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Across
  1. 3. accepts money from customers and deposits it into the customer’s account
  2. 7. is the process of transferring money from one individual or organization to another
  3. 8. is an account designed for accumulating money for future use
  4. 10. is a financial institution that is owned by its depositors
  5. 13. is a pension plan run by the federal government and based on payments an individual makes throughout his or her working life
  6. 16. is the overall rise in prices that reduces the value of money and the return on investments
  7. 17. is a loss of money that occurs when the selling price of an investment is less than the purchase price
  8. 19. is the period of life after ending a working or professional career
  9. 20. an employee authorizes the employer to take regular deductions from his or her paycheck to automatically deposit in a designated savings plan
  10. 22. is the process of determining when money that has been set aside in a retirement plan belongs to an employee
  11. 24. is a type of commercial bank that is locally owned and operated
  12. 25. is spreading risk by putting money in different types of investments
  13. 26. is an individual retirement arrangement in which contributions are tax-deductible, but withdrawals are taxed
  14. 31. is a strategy for using money to reach important goals and to advance a person’s financial security
  15. 32. is a retirement plan available to employees of nonprofit organizations
  16. 35. is a retirement plan in which an employee and/or employer contributes to the employee’s individual account under the defined plan
  17. 36. is a bank account that allows the owner to make deposits, write checks, and withdraw money
  18. 37. is the ease with which an investment can be converted to cash without losing value
  19. 38. is the amount of money earned on the investment, usually expressed as an annual percentage
  20. 39. pays a higher interest rate than passbook and statement savings accounts
Down
  1. 1. is an employer-sponsored retirement plan in which contributions are made with after-tax earnings, but withdrawals are not taxed
  2. 2. is an organization that provides services related to money
  3. 4. is a retirement plan that makes regular payments, usually monthly, to a retiree until his or her death
  4. 5. is a personal account for setting money aside for retirement
  5. 6. is the rate of yearly earnings from an account, including compound interest
  6. 9. is a demand deposit account that pays interest and allows for regular deposits and withdrawals
  7. 11. is a self-employed retirement plan that allows tax-deductible contributions for an employer and his or her employees
  8. 12. is the amount of uncertainty a person is willing to handle
  9. 14. does not accept deposits from customers but accepts money to invest in business deals or provide a service
  10. 15. is a type of defined-contribution retirement plan that does not have RMD rules and is available primarily to governmental employees
  11. 18. is an employer-sponsored retirement plan that allows an individual to deposit part of his or her earnings into a tax-deferred investment
  12. 21. is a financial institution that provides banking services exclusively online
  13. 23. is an individual retirement arrangement in which individuals contribute after-tax income, but qualified withdrawals are not taxed
  14. 27. is the process of moving retirement savings from one qualified account to another qualified account without incurring penalties and taxes
  15. 28. is a measure of the likelihood that something will be lost
  16. 29. is purchasing a financial product or valuable item with the goal of increasing wealth over time in spite of possible loss
  17. 30. is a business in which the primary function is to receive, transfer, and lend money to individuals, businesses, and governments
  18. 33. is income that results from selling an asset for more than the purchase price
  19. 34. is a contract with an insurance company that provides regular income for a set period of time, usually for life