Glossary I L

Idle funds-money not invested, therefore; earning no income.

Impaired Credit-the deterioration of aborrow's credit rating

Income-money recieved by a person or organization for work or from return on investment

Income fund-a mutual fund that seeks to provide stable current income by investing in securities that pay interest and dividends.

Index- a statistacal measure of change in an economy or securities market.

Indicator-anything used to predict future fiancial or economic trends.

Inflation-the rate at which the general level of prices are rising and the purchasing power is falling.

Interest-the charge for the privelige of borrowing money

Interest rate-the money paid on borrowed money

Investing-the act of committing money or capital to an endeavor

Investment-an asset or item with value that is purchased for income or capital appreciation.

Junk bond-a bond rated BB or lower because of high default risk

Keough plan-a defined benefit plan or defined contribution plan established by an employer for himself

Leading indicator-a measureable economic factor that changes before the economy starts to follow a pattern or trend

Leverage-the use of various financial instruments and borrowed capital to increase the potential return of an investment

Liquidity- the ease at which a security can be bought or sold without affecting the assests price.

Long term-holding an asset for an extended period of time

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