GLOSSARY Terms related to the Federal Reserve, banking and economics   A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |   individual development account (IDA) A type of savings account, offered in some communities, for people whose income is below a certain level.   individual retirement account (IRA) A retirement plan, offered by banks, brokerage firms and insurance companies, to which individuals can contribute each year on a tax-deferred basis.   industrial bond A financial instrument issued by businesses primarily to fund expansion or acquisitions.   inflation A rise, over time, in the average level of prices.   installment plan A plan requiring a borrower to make payments at specified intervals over the life of a loan.   interest A fee for the use of money over time. It is an expense to the borrower and revenue to the lender. Also, money earned on a savings account.   interest payments The return expressed in percentage earned on an investment each year. These payments are issued every six months based on an annual rate.   interest rate The percentage charged for a loan, usually a percentage of the amount lent. Also, the percentage paid on a savings account.   intermediate targets An intermediate target is a variable (such as the money supply) that is not directly under the control of the central bank, but that does respond fairly quickly to policy actions, is observable frequently and bears a predictable relationship to the ultimate goals of policy.   Internet banking Usually conducted through a personal computer (PC) that connects to a banking Web site via the Internet. Internet banking can also be conducted via wireless technology through both personal digital assistants (PDAs) and cellular phones.   investing The act of using money to make more money.   investor An organization, corporation, individual or other entity that acquires an ownership position in an investment, assuming risk of loss in exchange for anticipated returns.