5.1-5.14 Vocabulary Words

1.  a reward that a person is likely to receive if they behave in a certain manner

• positive incentive

• negative incentive

• collateral

• incentive

a punishment that one wants to avoid for failing to behave in a certain manner

• retirement

• positive incentive

• negative incentive

• Return of Investment

1.  a sequential structure showing how a sensible decision is made

• Risk

• Commercial banks

• Interest

• Rational Decision-Making Model

a person who supplies a short-term loan, but uses the borrower's car title as collateral

• Return

• Title Pawn Lender

• Collateral

• Interest

1. something that is put up as security for repayment of a loan

• Collateral

• Bonds

• Retirement

• Mutual Funds

1. A person who offers short-term, unsecured loans that do not require collateral

• Commercial Banks

• Economics

• Payday Lender

• Lender

 financial institutions that receive deposits of money, extend credit, and provide loans

• Investments

• Incentive

• Credit Unions

• Commercial banks

Interest charged is money that the bank pays you

• True

• False

Interest earned is money that the bank pays you

• False

• True

1. financial institutions that only serve members, which offer checking and saving accounts, as well as grant loans

• Property Tax

• Credit

• Credit Unions

• Commercial Banks