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Money supply
Total money in the economy.
Liquidity
How easily money can be used or converted to cash.
Demand deposits
Money in checking accounts.
Money Market Mutual Funds
Accounts that invest in short-term financial assets.
Fractional Reserve Banking
Banks keep part of deposits and lend the rest.
Default
Failure to repay a loan.
Mortgage
Loan to buy a house.
Credit card
Card that lets you borrow money to buy now, pay later.
Interest
Cost of borrowing or reward for saving.
Principal
Original amount of money borrowed or invested.