Glossary

I

Interest rate

Interest rate refers to the amount charged by a lender. When you borrow money from a bank or other lender, interest is the primary method by which the lender earns income. It's the amount you pay back on top of what you borrow and is calculated as a percentage of what you owe.

Income tax brackets

Tax brackets are the different ranges of income-assigned tax rates. In the United States, there are seven different tax brackets, with tax rates ranging from 10% to 37%.

4

4
4
4
4

A

A
A

B

B

C

C
C

D

D
D

E

E
E

F

F
F
F
F

G

G

H

H

I

I
I

L

L

M

M
M
M
M

N

N

P

P
P

R

R
R
R
R

S

S
S
S
S
S

T

T
T
T
T

V

V

W

W

4

4
4
4
4

Recent Terms

Stagflation
Stagflation is an especially difficult economic environment created by the combination of several factors: slow economic growth, high inflation, and a high unemployment rate.
Exchange-traded fund (ETF)
An exchange-traded fund (ETF) is a type of investment fund that holds a variety of underlying securities, including stocks, bonds, or alternative assets. It’s a way for investors to pool their money and each gain exposure to the assets within the fund rather than purchasing each asset individually.
403(b) plan
A 403(b) plan is a workplace retirement plan — typically offered by public schools and higher education institutions, churches, and charitable entities — designed to help employees save for retirement while receiving tax benefits.