Terms and concepts

tight monetary policy

see contractionary monetary policy

velocity

the speed with which money circulates through the economy; calculated as the nominal GDP divided by the money supply

Asset Allocation
A strategy for maximizing gains while minimizing risks in your investment portfolio. Asset allocation involves dividing your assets on a percentage basis among different broad categories of investments, including stocks, bonds and cash.

Beneficiary

The individual who receives, or may become eligible to receive, the benefits of a college savings plan.

Bond Funds
Mutual funds that invests in bonds. Some bond funds may focus primarily on short-term, intermediate-term and long-term maturities. Also known as fixed-investment funds.