Personal Finance 1
The time in which a loan is completely paid off
maturity date
A person who agrees to sign a loan and repay the loan if the other person stops making payments is a
co-signer
Assets that are pledged against loan repayment is
collateral
Money used by a borrower to pay a portion of the purchase price is a
down payment
When a person stops making payments on a loan they are in
default
A term for a type of loan people use to purchase a home is a
mortgage
A loan that allows a homeowner to borrow against the equity in the house is a
home equity loan
Appraisal fees, home inspection fees, title insurance and other expenses when buying a home are called
closing cost
An agreement to allow borrowing as needed up to a certain amount of money is a
line of credit
This insurance protects the personal items of people who rent apartments or houses
renters
Carrying a balance on a credit card means
you owe money from previous months
What action helps you avoid paying interest on a credit card
paying full balance each month
What is a prepaid cash card?
a card with a set amount of money before you use it
What is a cash advance on a credit card?
a loan of cash from your credit card, often with extra fees
A written order from you for your bank instructing it to pay money from your account to another party
check
What is inflation?
a general increase in the price of goods and services
Loans that have no collateral pledges against the loan
unsecured loan
Why is it important to pay your credit card bill
to avoid late fees
to avoid interest charges
to protect your credit score
Brooke bought one-year $5,000 that pays 4% interest annually. How much money will she have at end of the year?
$5200
Accounts that generally pay a little higher rate of interest on deposits than NOW accounts
savings
A firm that provides investors access to the stock markets
brokerage
Cash distributed to company shareholders
dividend
A fee for carrying out a transaction
commission
Government agency that regulates and monitors the stock market
SEC
People who own stock in a company
shareholder