General
What type of account typically comes with a debit card?
A Checking Account
What is cash-flow?
How much money the business earns
What does a credit report tell a financial institution?
If you are a risk to lend money to.
What does Principal mean?
The amount of money Borrowed in a loan. i.e. the Original amount.
What does CD stand for?
Certificate of Deposit
Name three reasons a business takes out a loan?
Name two things a credit report pulls
Personal info, Payment history, On time payments, Balances i.e. Debt to Income ratio, Inquiries
What does "term" refer to?
How long you have to repay a loan (months or years)
What type of funds are in a Money Market Savings Account?
Accessible Funds i.e. Liquid Assets
True or False: Business money equals personal money
False
What is my credit rating if my credit score is 670?
Good
Explain simple vs. compound interest
Simple interest is calculated only on the original amount of money, while compound interest is calculated on both the original amount and the interest that has already been added.
Name three types of Investment Accounts
Stocks, Bonds, Mutual Funds, IRAs, Retirement Accounts (401Ks), ETF-Exchange Traded Funds (will also accept S & P 500)
What is a business line of credit?
Flexible Borrowing (like a credit card)
Used for short term needs
Name the 3 Major Credit Bureaus
Equifax
Experion
Transunion
What does Collateral do? Bonus points for types of Collateral
It SECURES a loan. Types include Automobile, House, RV.