Banking
Insures up to $250,000 in a commercial bank?
What is the FDIC
Maximum amount of money a creditor will allow a credit user to borrow?
What is line of credit
Tax on wages, salaries,tips, and self-employed earnings
What is income tax?
Individual account for each employee in which the employer pitches in money annually
What is a defined-contribution plan
Pays higher than average dividends compared to other stocks issued
What is income stock
Credit Unions are run by?
What are its members
Credit as a one time loan that you will pay back over a specific period of time in payment of equal amounts
Ex: Mortgage, Vehicle loans
What is closed-end credit
Form that lets employers know how much tax to withhold form an employee's paycheck
What is a W-4 form?
Salary reduction plan that is funded by a portion of money taken out of your gross paycheck
What is a 401(k) plan
Typically sells for less than $1 a share but can actually sell for more than $10 a share
What is penny stock
An automatic deposit of net pay into an employee's bank account?
What is direct deposit
The five C's of credit
What are character, capital, capacity, collateral, and conditions
A tax collected when someone gives you money or property valued at more than $11,000
What is a gift tax
A contract purchased from an insurance company that guarantees a future fixed or variable payment to the purchaser for a certain number of years
What is an annuity
Type of stock where market value tends to reflect the economy
What is cyclical stock
A financial institution that specializes in mortgages
What is a Savings and Loans Association
Only paying the smallest amount required each month, which results in you paying more in the end is known as?
What is the minimum monthly payment trap
Specific expense that you deduct from your adjusted gross income?
Ex. medical expense
What is an itemized deduction?
Individual retirement plan that is not tax deductible and the money is taxed up-front
What is a Roth-IRA Account
Stock that remains stable during declines in the economy
What is defensive stock
A problematic financial institution that charges high fees to cash a paycheck?
What is a Check Cashing Outlet
Cost of credit on a yearly basis
What is the annual percentage rate (APR)
Detailed examination of your tax return by the IRS
What is a tax audit
Individual retirement plan that allows you to make annual contributions up to age 70 1/2, you can deduct this from your taxes
What is a Traditional-IRA Account
Stock from a corporation that has issued a large number of shares of stock and has a large amount of capitalization
What is large-cap stock