Types of Investments
A percent ownership in a business that pays divedends and can be sold for capital gains
Stocks
This entity operates just like a bank but is only open to certain members.
Credit union
Borrowing money to pay it back later.
Buying on credit.
What kind of loan is attached to an asset as collateral?
Secured loan
The type of tax that takes a larger percent of income from higher income individuals.
Progressive tax
Like IOUs paid back with interest after a period of time
Bonds
What is the best way to minimize risk when investing?
Diversify your investments
The 3 C's of Credit Worthiness
Character, Capacity, Collateral
The amount paid monthly for your insurance
Premium
The type of tax that is the same percent for everybody
Proportional tax
A decentralized currency stored in the block chain
Cryptocurrency or Bitcoin
Which type of Individual Retirement Account (IRA) taxes your contributions when they are put into the account?
Roth IRA
How is credit score determined.
By FICO, Fair Issac Corporation.
The amount you pay the insurance company before any benefits are paid to you?
Deductible
The type of tax that takes a larger percentage from those that make less money.
Regressive tax
Collections of investments offered to groups of people
Mutual Funds (MFs)
If you want to put $1000 in an savings account with a simple interest rate of 10%, how much will you have in savings after 10 years?
$2000
What is a good credit score?
680 - 850
Identify a type of insurance and explain what it covers.
Health, Disability, Life, Car, Property
Monitoring income, tracking expenses, setting savings or debt payoff goals, and putting money into savings or investments.
Budgeting
Short-term investments tied to a period of time and a fixed interest rate
Certificate of Deposit (CD)
Interest earned on the principal AND accumulated interest from previous periods is called...
Compound interest
Money saved in an account that earns interest.
Investing.