2.  The amount of money the borrow must pay for the use of someone else’s money  Payment people receive when they lend money, allowing someone to use their money  Often referred to as APR, or Annual Percentage Rate

3.  A rate which is charge or paid for the use of money  The rates can change due to inflation or Federal Reserve policies  If rates go up, people can earn more money if they have an interest earning account  If rates go up, people may have to pay more back if they have a loan

4.  Fixed rate- the rate is unchanging and guarantees the same percentage of interest  Variable rate- the rate can go up and down and is usually determined by economic decisions

5.  Savings Accounts  CD’s (Certificate of Deposits)  Low risk accounts  Money Market Accounts  Bonds  Stocks  High risk accounts

6.  See Notes for examples