Saving and Investing
Investing in ___ is like having part ownership of a company. When the company is doing well, you get profit; when the company is on the decline, you will be losing money.
stocks
What does the Latin word "credere" mean
trust
when you put money into an account you make a ____
deposit
Free market economies such as ours in the United States move regularly through consecutive phases of expansion and contraction know as ______
business cycles
What are the three primary colors?
red, yellow and blue
____ are investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks, bonds, or other securities that might be difficult to recreate on your own.
Mutual funds
If you are looking to buy a house, what might the landlord look at to determine if you can pay or not?
credit score
You should save about ___% of your income per pay period to develop a "rainy day fund" assuring you have enough money for the uncertainties in life
10%
The ____ in a prosperous economy is typically very high, meaning that the vast majority of workers who want jobs are able to find them. The unemployment rate and fluctuations in that rate are used in the analysis of the relative health of an economy.
employment rate
What is the capital city of Spain?
Madrid
a formal contract (IOU) where someone has loaned some money to a group (company, government, etc) and that group pay you back in the future with interest
bonds
Why are revolvers the biggest money makers for credit card companies?
interest
Most professions require additional education beyond high schoo. Since most students cannot afford the immediate cost of college, they borrow the money to pay for their education in the form of a _______
student loan
A side-effect of production or consumption (ex. Impact of the activity spills over into third parties, not otherwise engaged in the activity). There are negative and positive of these
Externalities
How many strikes AND fouls do you get in baseball?
3 strikes and 4 fouls
type of low-risk savings account that has a set interest rate on the money that is deposited.
Certificates of deposit (CDs)
When someone wants to get a loan from a bank, credit card companies look at the 3 C's: Capacity, ______, and character
capital
50/30/20 rule
50% ______
30% ______
20% ______
50% fixed costs (bills and housing)
30% finances (debt and savings)
20% entertainment (wants)
The central bank of a nation serves as its main financial institution. It manages the country's finances and is in charge of its monetary policy. In the United States, that entity is the ______. The _______ was established by Congress in 1913 and is comprised of three primary components:
The twelve regional Federal Reserve Banks
The Board of Governors
The Federal Open Market Committee
Federal Reserve System
The name of which African animal means "river horse"?
hippopotamus
An ____ is a long-term contract between you and your insurance company. Where you make series of payments and, receive regular returns at some point in the future. Has 3 different types: fixed, variable, and indexed.
Annuity
The Card Act moved credit card companies from a ____ driven model to an interest-driven model
fee
social security taxes
____ index is seen as a leading economic indicator of the relative health of the economy and is generally correlated to GDP growth.
Consumer Confidence Index
What comes down but never goes up?
rain