standard of living
The primary objective of financial planning is to improve one's __________________.
The total _____ of stocks, bonds, savings accounts, cars and real estate owned by an individual is called wealth.
_______ is the amount of satisfaction received by an individual for purchasing goods and services.
Liquid assets include cash, deposits in checking and savings accounts, mutual funds, and CDs that ______ within 1 year.
Government programs for controlling the amount of money in ___________ make up monetary policy.
Rising ____________ and a falling GDP (gross domestic product) are both early indicators of a recession.
The law of supply and demand dictates that when more people want to buy, the price goes up and when more people want to ____, the price goes down.
Stagflation occurs when inflation and ____________ both rise while at the same time economic growth declines.
When an investor purchases stocks or investment real estate with borrowed money this is called ________.
_______ examine a potential borrower's credit history to find out if the borrower is dependable, reliable and responsible.
_______________ is the amount of borrowing a person can realistically handle considering current income and expenses.
If you borrow money and use ________ property as collateral for the loan, this is called a chattel mortgage.
The ___________ ratio is determined by dividing a person's total monthly consumer credit payments by their monthly take home pay.
When money is left over after subtracting the total expenses from the total income, the result is a ____________.
Borrowers can avoid paying interest on open account credit by paying the full amount of the account _______ each month.
A ______ statement summarizes transaction charges, interest and fees on a consumer credit account.
Most bank credit cards allow the cardholder to obtain a ____________ from any participating bank.
Transferring the balance from one or more credit cards to a new credit card is called a _______ transfer.
A rebate card combines the traditional features of a bank credit card with an additional _________.
In general, the interest rates on ____________ are higher than any other form of consumer credit.
The grace period is the number of days in which you can pay your credit card statement in ____ without being charged interest.
Most credit cards feature a ________ interest rate which is tied to an index which goes up and down depending on the market.
A _______ credit card requires the cardholder to provide collateral before receiving the card.
Factors such as ___, annual income, length of time in current job, and level of existing debt are used to determine a borrower's credit score.
The _____ Credit Opportunity Act of 1975 and 1977 prohibits credit discrimination based on sex, marital status, race, religion, or national origin.
The Consumer Credit Reporting Act of ____ requires the full and accurate disclosure of credit information.
The Fair Credit Billing Act of ____ dealt with billing procedures and recourse on unsatisfactory purchases.
With ___________________, a debtor petitions a court for protection from creditors and arranges for liquidation and distribution of their assets.
The ___________ plan is an alternative to straight bankruptcy in which the debtor makes regular payments to the court which pays off the creditors.
Sometimes bankruptcy is caused by a personal catastrophe, but typically it is caused by the individual's _____________ use of credit.
If you've had a bankruptcy in your past, that information may remain in your file for up to __ years.
A _______________ agency may be able to contact your creditors and get your payments reduced.
A home equity line of credit is similar to a credit card in that it is a _________ credit account.
80 - On a home equity line of credit, most banks limit the maximum loan amount to _____ percent of the equity in the home.
Home equity is the difference between the amount you still owe on your mortgage and the ____________ of the home.
out of pocket
Auto insurance, fuel, tires, and maintenance costs are some of the _____________ costs of operating a car.
The loss in value that occurs over a period of time for an asset (such as an automobile) is called ____________.
If Bob buys a car for $10,000 but is only able to sell it for $7,000 two years later, the depreciation is $_____.
The manufacturer's suggested retail price for a particular vehicle with its options is called the _______ price.
Often an auto lease specifies the ________ value as the price at which the lessee can buy the car for at the end of the lease term.
Most auto leases include a ________ option which allows the lessee to buy the car at the end of the lease.
_____ laws are designed to protect consumers who purchase a defective car, truck, van, SUV, motorcycle, boat or computer.
If you knowingly purchase a car in _____ condition, you accept the defects and void your rights under the lemon law.
Although the ___ doesn't resolve individual consumer complaints, they do enter all complaints they receive into an online database that is used by law enforcement authorities worldwide.
With a cooperative apartment, tenants pay a monthly __________ in proportion to ownership shares, based on the space they occupy.
A _______________ is a legal document which protects both the lessor and the lessee.
loan to value
The _____________ ratio is the maximum percentage of the property value that the bank is willing to loan.
In general, the bank will require the buyer to purchase private mortgage insurance if the down payment is less than __ percent.
Truth in Lending
Under the ________________ Law, lenders are required to quote their rates in terms of APR.
Buyer closing costs include the down payment, ________ fees, insurance, mortgage points, appraisal fees, taxes, inspections, title search, etc.
A ________________ letter is obtained from a bank or finance company prior to shopping for a home and includes interest rates, down payment information and the size of the loan the borrower can expect approval for.
Earnest money is a _______ pledged by the buyer as a show of good faith when making an offer to purchase real estate.
The purpose of a ____________ is to verify the property has no liens or encumbrances and that the seller has the legal right to sell it.
Choosing an __________ rate mortgage offers the advantage of a lower initial interest rate to the borrower than a competing fixed rate loan.
On an adjustable rate mortgage, the interest rate cap is the _____ the interest rate can increase.
Loan payments that are lower than the amount of monthly interest charged results in ________ amortization.
city and county
Title companies search _______________ records to verify the home you're buying has a clean title.
When buying a home, a professional __________ is designed to evaluate the physical aspects of the house.
___________ is a formal process where the lender verifies the financial information you provide and runs a credit check on you.
An ____________ schedule shows how much of the mortgage payment will be applied to principal and how much to interest over the life of the loan.
PITI is an acronym that stands for principal, interest, property taxes and homeowner's _________.
When making a monthly mortgage payment the principal and interest go toward the loan and the tax and _________ goes into an escrow account.
When interest rates fall, it's possible to lower your payments by ___________ your mortgage.
Non-investment income, such as wages and salaries, tips and bonuses is classified as ______ income.
Capital gains are taxes assessed for making a profit selling stocks, bonds, and ___________.
head of household
An unmarried taxpayer who pays more than half of the costs for maintaining a home and an eligible dependent child or relative files taxes as _________________.
___________ taxes include city, state, and federal income taxes as well as social security taxes (FICA).
In addition to your paycheck, _______________, bonuses, and pensions are also subject to withholding taxes.
_____________ persons are required to file federal income taxes annually and pay estimated taxes quarterly.
Form _____ is designed for taxpayers who can file a more simplified tax return than Form 1040 and yet are ineligible to file Form 1040EZ.
Your employer determines how much money to ________ from your paycheck based on information you provide on a W-4 form.
Each January, your employer provides you with a W-2 form which indicates your earnings and withholdings for the ________ year.
When calculating federal income tax deductions, taxpayers can deduct state and local income taxes or _____ taxes but not both.
A progressive tax structure is one in which the ______ the amount of taxable income, the higher the tax rate.
________ agents are federally licensed and have passed a rigorous 2 day exam administered by the IRS.
When using a professional tax preparer, the ________ has primary responsibility for the accuracy of the tax return.
Tax avoidance is the process of legally reducing taxes in ways that are compatible with the intentions of ________.
Creating trusts, custodial accounts and transferring income producing property as gifts are all examples of income ________.
____ taxes apply to gifts of personal property, real estate, and both direct and indirect gifts.
In 2006, the ______________ tax paid on estates valued at over 2 million dollars was 46 percent.
In addition to private tax preparers, taxpayers can also use tax ________ to calculate their federal and state income tax payments.
Through the _________________ Tax Act of 1981 (ERTA), the Reagan administration accomplished several goals including across the board tax cuts.
The purpose of insurance is to protect you and your family from the _________ hardships associated with accidents, illness or death.
Any activity intended to reduce the likelihood that a loss will occur is called loss __________.
Insurance companies use underwriters to determine who is eligible for insurance and how much the ________ will cost.
_______________ can be an effective method to cope with many types of small exposures to risk where insurance would be too expensive.
If someone who is afraid of dying in an air crash refuses to fly, they are practicing risk _________.
A ___________ clause is a provision found in some health insurance policies that indicates the insurance company will only pay a portion of the insurance claim and not the entire amount.
For a monthly fee, HMO members receive a wide range of health care services, including hospital surgical and __________ medical care.
The purpose of ____ insurance is to protect your dependents from the financial loss associated with your death.
Credit insurance, also known as credit ____, is one of several kinds of insurance sold through lenders.
In the event that no named ___________ survives the insured, typically the estate of the insured receives the death benefit.
With the multiple of earnings method, the amount of life insurance you purchase is determined by multiplying your gross ______ earnings by some number.
Most insurance agents recommend that your life insurance coverage equal 5-10 times your current ______.
The ______________ method takes into account both your financial obligations and financial resources.
Social Security Survivor's benefits are intended to provide basic support to families faced with the loss of their principal ____________.
If a widow or widower is disabled, they can begin receiving social security survivor benefits at age __.
With a ________ term life insurance policy, the coverage remains the same, but the premium may increase.
With a decreasing term life insurance policy, the coverage decreases but the _______ does not change.
Some people choose _____ life insurance because the periodic payments force them to save regularly.
__________ premium offers the greatest amount of death protection and the least amount of savings per premium dollar.
Whole life, variable life, universal life and variable universal life insurance policies are all classified as __________ insurance.
Term life insurance doesn't have any cash value and is purchased for a fixed amount of protection for a _____ period.
__________ insurance provides income to a worker who becomes unable to work due to sickness or injury.
The _________ component of a car insurance policy pays for damages to property and injuries to people caused by you.
To receive payment through _________ motorist insurance, you must prove that another motorist was at fault, damages were incurred, and that the motorist has no insurance or too little insurance.
Uninsured motorist insurance protects the insured and the insured's passengers from _____________ losses resulting from an automobile accident caused by an uninsured motorist.
If your car is old and isn't worth much, it doesn't make sense to carry _________ insurance.
If your car were to be damaged by fire, hail or water, _____________ insurance would pay for the loss.
Comprehensive homeowners insurance (does / does not?) cover damage from floods, landslides, and earthquakes. ________
In addition to factors such as age, sex, and _______ record, how much you pay for insurance is influenced by your credit history.
The principle of _________ states that insurance will pay no more than the actual financial loss suffered.
COBRA is a law that allows a person to maintain their group ________________ coverage for up to 18 months if they lose their job.
The day to day administration of liquid assets by an individual or family is called _______________.
Savings accounts are an example of _____ deposits and are expected to remain in the bank longer than demand deposits.
An MMDA is an insured savings account offered by banks and are intended to compete with ___________ accounts.
A ___________ is a widely diversified portfolio of securities which is sold to the public by an investment company.
With __________ mutual funds, the fund manager is allowed to buy and sell securities at will.
___________ 12(b)-1 fees were designed to help cover distribution and marketing expenses.
With an _______ type security, interest is paid when the security is cashed in, not periodically.
When an account holder orders the bank to refuse payment of an issued check, this is called a ____________.
Investing involves purchasing __________ which are stable and offer a somewhat predictable level of return.
With _____, the market value may change but the yield you receive while you own it will remain constant.
______ risk is the possibility that a company can't make the scheduled principal and interest payment it owes you.
The current price of a stock divided by its most recent ____ quarters of earnings is called the price earnings ratio.
______ REITs own office buildings, condominiums, hotels, apartments, and industrial plants. Mortgage REITs provide permanent mortgages and short-term construction loans.
The biggest pitfalls to a sound __________ include starting too late, saving too little, and being too conservative with investments.
The three main sources of income for retired people are _______________, assets, and pension plans.
The single largest source of income for the average American retiree is _____________________.
Employees of state and local governments are exempt from mandatory participation in the _______________ system.
To qualify for full retirement benefits, workers must be employed in a job covered by Social Security for at least __ years.
When you work and pay Social Security taxes, you earn up to a maximum of ____ credits for each year.
The number of work credits you need to qualify for Social Security __________ benefits depends on your date of birth.
A trustee is a person appointed by the will to take legal ownership of the property, the benefit of the ownership of which is to go to ______.
A will that is prepared in the handwriting of the testator is called a ___________ will.
When a person dies _________ (without leaving a will), his property must be disposed of in accordance with the law and to do that the probate court appoints an administrator.
Before the _________ can receive their shares of the estate, remaining debts, funeral expenses, and taxes must be paid.
The clause in a will in which the witnesses confirm that they performed their duties in accordance with the law is the ___________ clause.
In the ___________ clause of a will, the testator states that he is signing the document as his last true will and testament.
A ___________ is a bequest where the beneficiary is given the use of a designated property for the remainder of his life.
The trustee is the institution or person who has _______ of someone else's property or money to be given to a third party.
The goal of estate planning is to ______________ while still having your wealth go where you want it to go.
An estate is considered _________ if after paying all debts and expenses, nothing remains for the survivors.
If you receive property as an inheritance and later sell it at a profit, that ______ is subject to income taxes.
______ taxes are paid out of the estate's assets before anything is distributed to the heirs.
When business partners take out life insurance on the life of each other, this is called _______ life insurance.
During the initial estate planning meeting, you should inform the lawyer of all your assets, liabilities and your estate planning __________.
Liquidity is important not only because it allows your survivors to continue to pay their bills, but liquidity is also essential so that any ____________ that arise can be paid when due.
A _____ plan allows self employed individuals to set up a self directed retirement account for themselves and their employees.
A SEP-IRA is similar to a _____ account and is targeted at small business owners who want a plan that is simple to set up and administer.
Insolvency, reduction of days in account receivables, increasing collection rates, selecting
shortterm investment and increasing days cashonhand are characteristics of what type
15 Years Fixed Rate
Mortgage and 30 Years Fixed
Two types of fixed rate mortgages are: _____
The percentage of a yearly gross income dedicated toward paying each month mortgage
is known as _____
An unbiased examination and evaluation of the financial statements of an organization is
known as _____
Whole Life Insurance
A predictable policy that provides a guaranteed benefit and earning rate on cash value
and level premium are known as ____
An added layer of security for those at risk for being sued for damages to other people's
property or injuries caused to others in an accident it protects against libel, vandalism,
slander and invasion of privacy is known as _____
Policy limit fair of fair
market of structure
In the case of total loss of the structure, what must be considered for the Actual Cash
Value (ACV) to be determined
A policy that allows the individual to choose any doctor and hospital that the individual
wish when seeking health care services is known as _____
Dollar Cost Average
The technique of buying a fixed dollar amount of a particular investment on a regular
schedule, regardless of the share price is known as _____