Economic$
What is inflation?
Investments with higher expected returns also have more of this unfavorable characteristic.
What is risk?
Generally, holding a mutual fund has ___________risk than holding an individual stock.
What is less?
This type of loan is used for purchasing a home.
What is a mortgage loan?
Term for money that exceeds an individual's tax liability and is then issued from the government back to the individual.
What is a tax refund?
The cost for borrowing money OR the return to saving/lending
What is an interest rate?
Strategy that involves spreading your investments across a variety of instruments, industries, and countries to lower risk. Also captured by "don't put al your eggs in one basket."
What is diversification?
The interest earned on a certificate of deposit versus the interest earned on a savings account.
What is more?
This record includes a person's credit history, including all open and closed accounts and their payment history. Information included is used to construct credit scores.
What is a credit report?
Form used by US taxpayers to file an annual income tax return.
What is Form 1040?
Central bank of the United States charged with maintaining a stable and flexible monetary and financial system.
What is the Federal Reserve System (the Fed)?
Captures distributions of a company's earnings to its shareholders.
What are dividends?
The minimum investment amount for a mutual fund versus the minimum investment amount for a hedge fund.
What is less? These amounts vary by fund but can be as low as $50 for mutual funds while hedge funds require large initial investments ($100,000 on very low end, $1 million is more common).
What is a credit limit?
Employers use this form to report an employee's annual wages and the amount of taxes withheld from their paycheck.
What is form W-2?
The rate targeted by the Federal Open Market Committee when making monetary policy decisions
What is the federal funds rate?
Investment fund that pools money from many investors to purchase securities, and is traded on stock exchanges.
What is an exchange traded fund (ETF)?
The Federal Reserve's current target for the inflation rate versus the target federal funds rate.
What is less? The inflation target rate is 2%, and the federal funds rate target is 4.25-4.50%.
Recommended maximum value for the credit utilization ratio--the amount of available credit you are actually using.
What is 30%?
Type of deduction that can be taken by taxpayers without itemizing their deductions.
What is a standard deduction?
Current Chair of the Federal Reserve System
Who is Jerome Powell?
Metric that measures a stock's level of market risk or how the stock moves with the market.
What is beta?
The number of companies in the S&P 500 index versus the number of companies in the Nasdaq?
What is less?
Term used to describe individuals who have insufficient or no credit history with one of the three major credit reporting companies.
Who are the credit invisible?
FICA taxes are payroll taxes that fund these two major social programs.
What are Medicare and Social Security?