Maturity
The date at which a debt is due and payable, such as a bond. On maturity the principal and interest are paid out to an individual.
Medicaid
The government program that provides health-care assistance to the poor.
Medicare
A U.S. government program that provides medical expense coverage to people aged 65 and older. Medicare is comprised of two major programs: Hospital Insurance (Part A) and Supplementary Medical Insurance (Part B). The Medicare coverage for Part A has no premium and will pay 100% of your hospital costs for the first 60 days after you have paid a deducible of about $720. Medicare Part B pays up to 80% of your doctor's bills for a monthly premium of about $50.
Monetary policy
The regulation of the money supply and interest rates by the U.S. Federal Reserve, in order to control inflation and stabilize currency. If the economy trends toward inflation, the Fed can withdraw money from the banking system, raise the reserve requirement or raise the discount rate to make it cool down. If the economy is stagnating, the Fed can increase the money supply, lower the reserve requirement and decrease the discount rate.
Money Order
An order for the payment of money, issued by banks, post offices, companies etc. and payable at another. They can be used to pay off bills if an individual does not have a checking account.
Mortgage
A debt in which the borrower gives the lender a lien on property for the repayment of a loan. The borrower however has use of this property, and the lien is removed when the lien is fully paid. It is commonly used in real estate.
Municipal bond
Bond issued by local-government authorities, including states, cities and their agencies.
Mutual fund
An investment company that pools the money of many individual investors to purchase stocks, bonds or other financial instruments. The primary benefits of mutual investing are management and diversification. A management fee is charged for these services, usually 1% or 2% a year.