Terms in this set (122)
This is what people purchase to manage risk
The loss of potentail gain from other alternatives when one alternative is chosen
is how quickly an asset can be converted to cash, while maintaining its value
The legal process of eliminating most types of debit.
Also: damages a persons credit rating and can neg. affect the possibility of receiving loans in the future
Annual intrest with a credit card or a loan
A defined contribution plan that automatically takes out money from an employee's paycheck before income taxes and invests it in mutual funds for purposes of retirement savings
If you choose to pay back a car loan cover a longer period of time the monthly payment will be _____ and intrest will be ______
Truth in lending act
Protects you against inaccurate and unfair billing and credit card pract.
What are advantages of credit
Saftey, Sercurity, furture loan approval, convenience
What are disadvantages of credit
Impulse spending, debt, ID theft, overspending
This type of financial institution typically charges the lowest intrest loans
How does bouncing a check(can) affect your checking account
Bank charges a fee
The smallest required payment that a credit card holder can pay on a monthly bill and still remain in good standing with the lender
Paying the minimum monthly payment on a credit card will cause you to pay it off ______ with more ______
When would it be beneficial to borrow money
School, car, work and home
reducing risk by spreading out your investments over several assets
the purpose is to match your check register with your bank statement for any outstanding debts or deposits that have not clearned
What are 3 factors that affect time value of money
Time, principal and rate of return
assets minus liabilities of an individual or company
The amount one receives after taxes and deductions have been withheld during a pay period
The ______ the financial risk, the ______ the potential financial return
The Federal Reserve
The nations central bank also known as the "Bankers" Bank
Online Banking/Electronic Transfers
Payments that are made by transferring money electronically from a checking account to another account every billing period
The _____ is the person that is receiving the check
When you write "for deposit only" above your signature on the back of your check you are using a style of endorsement called ___________
Independent agency that preserves public confidence in the banking system by insuring deposits
Social Security Tax
Tax on earnings and is the largest defined benefit plan that exisits
A record of your income and expenses
Money received on a regular basis
The cost required for something ; Money spent on something
Allow the use of debit cards and direct deposits
Allows the holder to access their account to withdraw cash or pay goods and services (with money they have)
The electronic transfer of payment directly from the account of the payer to the recipients account
A high school student can have their parents ____ if he/she doesn't have credit or enough money to fund a loan
You can check your credit score from one of 3 companies
Equifax, Experian, transunion
Indicate his/her tax situation to the employer
Reports an employee's annual wages and the amount of taxes withheld from his/her paycheck
The alternative to the IRS 140 income tax form and offers a faster and easier way to file taxes (the simplest tax form)
What should I do if I want my employer to with hold more money from my paycheck so there is less chance of me owing money when I file my taxes
Decrease the number of allowances on your W-4
Money paid regular at a particular rate for the use of money lent
A budget in which the income is greater than expenses has a ____ while a budget in which expenses are greater than income has_____
______ is the chance of injury, damage or economic loss
List the most liquid to the least liquid
Cash, checking account, money market account, certificate of deposit, and bond
List investments from lowest to highest average rate of return
Safety deposit box, checking account, money market account, mutual fund, and stock
Short term goals are accomplished within the next ____, intermediate goals in the next ___, and long term goals in ____.
Year, 2-5 years, and 5+ years
The most popular place in the world to trade stock is the ____
The availability of a good or service is the ___, while the desire to have a good or service is the ____.
Supply and demand
Credit cards are a type of _____, while car loans are a type of _____ or a type of ____ loan.
Open-End Credit, Closed-End Credit, and Installment
The _________ is the organization responsible for "policing" the U.S. securities market
Securities and exchange commission
An e-mail attempting to illegally obtain your personal info is known as__
When investors are pessimistic about the market
When investors are optimistic and think it's a great time to buy
The _______ is the policy making body of the FED in charge of conducting money policy
Income remaining after deduction of taxes other mandatory charger and expenditure on necessary items
Method in which an employee transfers parts of his-her current income
Law requiring a deduction from paycheck and income that goes toward the social security program and medicare
Doesn't fluctuate with changes in production level or sale valume
That respond directly and proportionately to changes in activity level or volume
Are not paid on a regular monthly basis
Us citizenship and immigration form
The availability of jobs in a certain area
The state of being in short supply (shortage)
Health benefits to employees and their families upon the occurrence of certain qualifying events
Flexible Spending Account
A number of tax - advantaged financial accounts that can be set up through a cafeteria plan of an employer
An establishment that focuses on dealing with financial transaction, loans, and deposits
A plastic card with a built-in-microcessor
A persons credit score calculated with software from FICO
Mandates that all states must designate an agency responsible for protecting the rights of mentally ill patients.
Sum of the costs of credit card in the U.S.
Correlation between risk and return
The lower the risk, the lower the return, the higher the risk, the higher potential return
A profit from the sale of property or of an investment
A sum of money paid regular by a company to its shareholders out of its profits
Final payment due of a loan or other financial instrument, at which point the principal is due to be paid
A portfolio strategy that allocates assets according to relative safety and soundments of investments
An issue of new shares in company to existing shareholders in proportion to their current holdings
Dollar Cost Averaging
An investment strategy for reducing the impact of volatility on large purchases of financial assets
Buy and Hold
An investment strategy where an investor buys stocks and holds them for a long time
Rule Of 72
States that in order to find the number of years required to double your money at a given rate
A quick method of calculating the intrest charge on a loan
Housing, group insurance, disability income, protection, retirement benefits, day care, sick leave, vacation, social security.
A sum money lent or invested on which intrest is paid
Are amounts withheld from an employee's payroll check and these amounts are withheld by their employer
Tax levied by a government directly on income, especially an annual tax on personal income
An individuals total personal income before taking taxes or deductions into accident
The process of exempting a person from paying taxes on a specified amount of income for themselves and their dependents
A continuous rise in the price of goods and services
Insurance that pays out a sum a sum of money either on the death of the insured person or after a set period
A payment made by a beneficiary in addition to that made by an insurer
A type of insurance that pays for medical and surgical expenses
Provides or arranges managed care for health insurance
Managed care organization of medical doctors, hospitals and other health care providers
A form of property insurance that provides coverage for a policy holder belongings and liability within a rental property
A specified amount of money that the insured must pay before an insurance company will pay a claim
Is a formal record of financial activites
5 C's of credit
Character, Capacity, Capital, Collateral, Conditions
Loan that repaid over time w/ a set number of scheduled payments
The charging of personal property by a debt or as security for debt
Fair Credit Reporting Act
Regulates the collection of information and access to your credit report
An economy of or reduction in money, time or other resources
An amount owed by a business.
An amount paid to an employee based on a percentage of the employee's sales
Interest earned on both the principal amount and any interest already earned.
A savings account you can access quickly to pay for unexpected expenses or emergencies
Value of an asset at a specific date
The value in the present of a sum of money
Employee compensation that is calculated hourly; the price of labor
A regular payment, often at monthly or biweekly intervals, made by an employer to an employee, especially in the case of professional or white-collar employees. Salaries are paid for services rendered and are not based on hours worked.
Disposable income not spent for consumer goods.
An amount that credit card companies can charge for the use of a credit card.
A fee for borrowing money, added to a monthly credit card bill.
A charge for setting up a loan that is typically associated with home loans.
A time period during which no finance charges will be added to your account.
The maximum amount of credit a lender will extend to a customer
A company that collects info relating to credit ratings
A report on a person's creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and savings balances
A crime that involves someone pretending to be another person in order to steal money or obtain benefits
The use of credit for personal needs
The provision or transfer of goods, services, or ideas in return for something of value
A useful or valuable thing, person or quality
An arrangement to receive cash, goods, or services now and pay for them in the future.
a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered
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