Credit Cards/Loans
Money that you borrowed and owe back, usually with added interest.
Debt
Two events that cannot occur at the same time are called
Mutually Exclusive
Explain the Law of Demand
As prices decrease, quantity demanded increases.
What is a stock?
Shared ownership in a company
A line connecting two vertices is called an
Edge
The amount of money that a lender allows you to spend.
Credit Line
What is the probability of flipping a heads 4 times in a row?
(1/2)4
Explain the Law of Supply
As prices increase, quantity supplied increases
Describe the difference between a stock and an index fund
The number of adjacent vertices a vertex has is called
Degree
~20%
What is the probability of drawing a king two times from a fair deck of 52 cards with replacement?
4/25 * 4/52
Describe the concept of consumer soverignty
How many years will it take for an investment to double with a rate of return of 7%?
~10.3 years
What is the difference between a cycle and a path?
A cycle returns to its starting vertex.
The period between the end of a billing cycle and when your payment is due is called the
Grace period
Find the probability of drawing a 2, then a 3, then another 3 from a fair deck of 52 cards without replacement.
4/52 * 4/51 *3/50
This is the point at which profit and expenses are equal.
Break-even point
Describe a good long-term investment strategy.
Dollar cost averaging an index fund
What is the minimum degree of a graph
The lowest degree in a graph
True or False: Taking out a loan always improves your credit score.
False. If you do not make timely payments, your credit score will decrease.
P(pulled over and speeding ticket) = 0.08
P(pulled over) = 0.15
Find the probability you get a speeding ticket given you got pulled over.
.08/.15=0.5333...
An economics system in which the government controls all aspects the economy.
Command economy
Why is it not the best idea to keep all of your money in a savings account?
Inflation and low interest rate
A cycle that visits each vertex exactly once
Hamilton Cycle