Money Management
Money you receive from work, dividends, business profits, or interest and so on... is called what
Income
The type of account used for everyday spending with checks or a debit card is called what?
Checking Account
The original amount of money you borrow is called what?
Principal
The monthly payment you make to keep insurance is called what?
Premium
Buying part ownership in a company is called what?
Stock
Trading goods or services directly without using money is called what?
Barter
The fee a bank charges when you spend more than you have in your account is called what?
Overdraft
The extra money you pay when borrowing, usually shown as a percentage, is called what?
Interest
The amount you pay out of pocket before insurance begins to cover costs is called what?
Deductible
Lending money to a company or government in exchange for interest is called buying what?
Bond
The very first thing someone earning income should save for?
Emergency Fund
The unique number on a check that identifies your bank is called what?
ABA Routing Number
The yearly cost of borrowing money, shown as a percentage, is called what?
APR
The person who receives money from a life insurance policy is called what?
Beneficiary
Spreading money across different investments to lower risk is called what?
Diversification
When given a choice, the cost of the next best option you give up is called what?
Opportunity Cost
A nonprofit, member-owned financial institution that offers banking services is called what?
Credit union
A credit score is measured on a scale that starts at ____ and goes up to ________?
300 - 850
Insurance that covers costs if you injure someone or damage their property is called what?
Liability
Shares that pay fixed dividends and have priority over common stock are called what?
Preferred Stock
Using the Rule of 72, about how many years will it take $1,000 to double at 6% interest?
12 years
If someone has $1,000,000 to deposit, how many separate accounts would they need to fully insure it under FDIC rules?
4
A loan of $200 has a 10% APR. How much interest is charged in one year?
$20
An insurance policy has a $1,000 deductible. If an accident causes $3,500 in damage, how much will the insurance company pay?
$2,500
You own 200 shares. After a 1-for-2 reverse stock split, how many shares do you have?
100