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TERMINOLOGY
Asset – Any item of value owned by a person. This might include cash, real estate properties, businesses, stocks, bonds, or other property.
Liabilities – The obligation to pay money to another person for a good or service.
Line of Credit – The maximum amount of money available for a borrower to borrow from a bank with specified conditions.
Net Worth – The total value of one's assets minus his or her liabilities.
Prime Rate – The rate at which banks lend to their most credit-worthy borrowers.
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