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Personal Finance Economics EOC Review
Terms in this set (38)
Reward to act in a certain way
Punishment for not acting in a certain way
Financial institution that requires membership, but has lower loan rates.
Financial institution that has many services, but higher loan rates.
Share in the ownership of a company. Has high risk with the potential of high return.
Loan to a government or corporation. Has low risk with low returns.
Investment option in which money is placed into many different stocks. There is a medium amount of risk with the potential of medium returns.
Tax which taxes those with higher incomes more than those with lower incomes
Tax which taxes those with lower incomes more than those with higher incomes
Tax that taxes all income groups the same percentage
Refers ones ability to borrow money
Money that must be paid to an insurance company before the company will pay to fix damages.
The cost of insurance.
Which investment would be BEST for you if you are not concerned with a large return, but worried about risk?
The Federal Income tax is an example of which type of taxes?
Which type of investments would give investors dividends?
What is the impact of investing?
Postponing current rewards
Everyone in Mooneyland pays a tax rate of 10%. What type of tax system is this?
Which group of people is harmed by higher taxes?
What is the purpose of banks charging higher interest rates on loans but paying lower interest rates for savings/deposits?
To earn a profit
Which type of financial institution offers low interest rates for loans but requires membership?
Which investment offers the lowest amount of risk?
Which type of financial institution is owned by shareholders, insured by the FDIC, and offers a wide range of services?
If the risk associated with an investment increases, what happens to the amount of possible returns?
Nick makes $15,000 per year and pays 4% in taxes. Sarah makes $90,000 per year and pays 2% in taxes. Which type of tax system is this an example of?
Which type of tax system taxes higher incomes at higher rates?
Mr. Moneybanks wants to invest a large amount of money and isn't worried about the risk involved. He just wants a large return for his investment. Which type of investment is the best choice for Mr. Moneybanks?
Stocks have the potential for very high returns. What is the other major characteristic of stocks?
What should be considered when making a rational economic decision?
Wants & needs, short-term goals, long-term goals
Which type of financial institution requires physical collateral for a loan?
What amount of risk & return is associated with retirement accounts?
varies, depends on investment
What is the benefit of placing money in a certificate of deposit (CD) instead of a savings account?
Higher amount of interest
What are the characteristics of commercial banks?
Owned by shareholders, formed to make a profit, charge more interest than they pay
What are the characteristics of credit unions?
Owned by members, not formed to make a profit, offer lower interest rates
Which group of people is hurt the most by gentrification?
Why would someone borrow from a payday lender instead of a bank?
Credit issues in the past
What is the difference between a traditional IRA and a Roth IRA?
Roth allows you to pay taxes now and traditional allows you to pay taxes later
What is usually included in a monthly budget?
Earned income, individual expenses, total expenses, savings goal
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