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Review Questions (whathuhinvesting.com)
Terms in this set (50)
Money by government decree; has no alternative value or use as a commodity.
any type of additional income over expenses that is completely unexpected
Money received for work performed; may include salary, wages, tips, professional fees, commissions, etc.
Income derived from investments and other sources not related to employment services. Examples of unearned income include interest from a savings account, bond interest, and dividends from stock, rental properties, etc.
need to pass a certification test
the total amount of income from wages before any payroll deductions
take home pay, money made after expenses
also known as exemptions; W-4 Form is filled out and given to employer stating number of allowances
Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
a formula designed to help people estimate how long it will take to double their money at a certain expected interest rate
time value of money
A concept that money available now is worth more than the same amount in the future because of its potential earning capacity
A measure of the ease with which an asset can be converted into money without a significant loss of value.
a loan backed by an asset
open end credit
debt to credit ratio
A measure of the total balance on your credit cards and other loans divided or compared to to your total credit limit.
A time period during which no finance charges will be added to your account
The cost of credit including interest, service and/or transaction fees.
A credit rating developed by Fair Isaac & Company in the late 1950s, now widely used by lenders and employers. It consists of digit numbers ranging from 300-850. It measures a person creditworthiness.
Health Maintenance Organization...
A type of managed care where no claims are submitted, must use the physicians and facilities, the physician are paid on a per head basis rather than for actual treatment provided.
A professional who provides financial planning and advice on financial matters.
Exchange Traded Fund...
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.
A new-issues market where investors buy securities initially offered for sale, and the money goes to the issuer
market for reselling financial assets
A pool of money used by a company to purchase a variety of stocks, bonds or money market instruments. Provides diversification and professional management for investors.
tax refund loans
a loan that is offered to people against their income tax return
Individual Retirement Account - A personal qualified retirement account through which eligible individuals accumulate tax-deferred income up to a certain amount each year, depending on the person's tax bracket.
Account providing tax-free income growth; contributions are made with after-tax dollars.
A tax-deferred college savings plan run by states and set up with mutual fund companies
person who risks money in order to make a large profit
A signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand
A sales method that keeps merchandise in storage until the customer finishes paying for it.
Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation and/or retirement
long term goal
A general realistic statement of what one hopes to attain utimately. Ex. Obtaining your degree in the next 5 years
Amount originally borrowed in a loan
line of credit
A pre-established amount that can be borrowed on demand with no collateral.reconcile
To bring a bank statement and your own record of transactions into agreementChapter 7
Chapter 7 bankruptcy
A chapter of the Bankruptcy Code that provides for liquidation (sell for cash) of the debtor's assets in order to repay the creditors. Certain assets or aggregate value of assets of the debtor may be exempt (they don't have to sell) based on state law.
Chapter 13 bankruptcy
a reorganization form of bankruptcy for individuals that allows the debtors to keep their property and use their income to pay a portion of their debts over three to five years
fixed amount at the time of your application and approval. Repaid in fixed monthly payments over a specific period of time. Example- Auto loans and mortgages
Closing down the operations of a business and selling its assets and operations to pay its debts and distribute any gains to stockholders.
home equity loan
a loan secured by equity value in the borrower's home
This covers the car of the insured person and pays for repairs after an accident or cash compensation if the car can't be repaired. This type of coverage is usually optional
covers your car for reasons other than a collision, such as theft, fire, vandalism
A periodic payment to the insurance company to keep the policy in force.
whole life insurance
Form of life insurance policy that offers protection in case the insured dies and also builds up cash surrender value at a guaranteed rate, which can be borrowed against. The policy stays in force for the lifetime of the insured, unless it is canceled or lapses.
Universal Variable Life Insurance
Type of the US life insurance which combines the benefits of an adjustable premium, adjustable coverage term life insurance, and a savings account
Better Business Bureau
A non-profit organization sponsored by local businesses to provide general information on companies. It maintains records on consumer inquiries and complaints and sometimes offers various consumer education programs.
a partial payment made at the time of purchase
An attack that sends an email or displays a Web announcement that falsely claims to be from a legitimate enterprise in an attempt to trick the user into surrendering private information
Items and services needed to make a house or apartment functional such as hot water, electricity, natural gas, phone service, and cable service.
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