Economics Unit 7

financial institution

group that channels savings to investors; includes banks, insurance companies, savings and loan associations, credit unions

savings

the dollars that become available for investors to use when others save

interest payment

made for the use of borrowed money; usually paid at periodic intervals for long term bonds or loans

interest rate

the price of credit to a borrower

federal reserve system

privately owned, publicly controlled, central bank of the united states

federal deposit insurance corporation

the u.s. government institution that provides deposit insurance on the depositor's account

credit union

nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services

creditors

persons or institutions to whom money is owed

collateral

something of value that a borrower lets the lender claim if a loan is not repaid

secured loan

a loan that is backed up by collateral

unsecured loan

a loan guaranteed only by a promise to repay it