Key Terms
Something that has value and is owned by individual or organization.
What is an asset?
The lending tool that does not require any collateral to be presented.
What is an unsecured loan?
An example is the granting of a mortgage where the house is collateral.
What is a secured loan?
Ownership in a company.
What is a stock?
What is a stock broker?
The taking of an asset due to lack of payment.
What is repossess?
An arrangement to pay a debt in increments.
What is an installment plan?
Paying off credit card balances, paying bills on time and reducing debt.
What are factors that can improve your credit score?
A debt investment tool issued by the government or a company usually to raise capital for a specfic purpose (s)
What is a bond?
The process of earning interest on both the principal as well as already accumulated interest.
What is compound interest?
Division of assets between various entities.
What is asset allocation?
Money spent on something.
What is an expenditure?
Credit score, income, debt -to income ratio, and credit history.
What are things reviewed when being considered for a loan?
Diversification and professional management are benefits of this type of investment.
What is a mutual fund?
What an individual owns versus what they owe.
What are assets versus liabilities?
A back up strategy in case one fails.
What is a contingency plan?
Collections of exchanges where investors buy and sell shares.
What is the stock market?
An example is a credit card balance that does not require collateral.
What is an unsecured loan?
This investment is FDIC insured and has no fluctuation in principal value.
What is a money market account?
An individual who provides comprehensive financial advice.
What is a certified financial planner?
The pooling of assets from many investors into securities such as stocks, bond and short term debt.
What are mutual funds?
The sum of money or assets, devoted to a specific purpose
What is appropriation?
High credit card balances, defaulting on loans and missing payments of bills.
What are some factors that can ruin your credit score?
Global events, corporate earnings and economic indicators can effect this.
What is the stock market?
Funds not tied to debts offering flexibility for unexpected needs.
What is an unencumbered balance?