Money
Different ways people are paid.
What is wages, rentals, interest, capital, profits, investments, entrepreneurship.
Which institution(s) charge the highest interest rates on loans:
What are
pawnshops, payday lenders,
tax refund lenders, finance companies
Also called the Consumer Credit Protection Act, legislation enacted in 1968 requiring money lenders to be explicit about the true costs of credit transactions. The Truth-in-Lending Act also outlaws the use of threatened or actual violence to collect debts
What is Truth in Lending Act?
Insurance policies transfers all or some of the financial impact of unexpected events. Insurance exists to
help individuals recover from the financial consequences of these events by pooling the resources of a
large group to pay for the losses of a small group.
What is transfer risk?
a financial market that experiences an extended period of growth above the historical averages.
What is the bull market?
The degree of ease in which assets can be sold.
What is liquidity?
member owned co-operative financial institution – advantage is lower interest rates on loans
What is a credit union and the advantages of using one?
the amount of available credit you have relative to the amount of debt you carry.
What is credit to debt ratio?
the amount that the insured has agreed to pay before the insurer is obliged to pay anything on a covered claim. The higher the deductible the lower the monthly premium (payment) – the lower the deductible the higher the monthly premium (payment).
What is an Insurance Premium
refers to financial markets that are experiencing a prolonged period of contraction or loss.
What is a bear market?
collects taxes, prints money, issues treasury bonds
What is the role of the treasury?
interest added to principal – interest earned on interest
What is compound interest?
Three leading credit reporting agencies
What is Equifax, TransUnion, Experian
an insurance policy that will pay a lump-sum benefit to your family or another beneficiary of your choice, if you die while the policy is in effect. Is not a permanent life insurance policy.
What is a Term Life Policy?
the earnings given to the people who are shareholders of the company stock.
What are dividends?
not allocated for food or shelter.
What is Discretionary income or budget surplus?
6 month grace period (after leaving school) before you start making payments.
What is repayment of student loans
the longer you take to pay back a loan, the more you will pay in interest and principal overall.
What is The length of debt repayment and impact on cost?
a policy that is also a way to invest money. It is referred to as a permanent life insurance policy because, as long as you pay your premiums, the policy is yours for life, providing your loved ones with a guaranteed benefit upon your death.
An financial instrument that gives its holder/owner the right to collect interest payments from the company or organization that has borrowed money. A municipal bond is a bond that is issued by a city or some type of governmental agency. Government bodies usually issue tax-free municipal bonds to fund large capital expenses and improvements, like parks, downtown restorations, schools or airports.
What are Bonds–purpose; how they work; interest feature; tax free feature of municipal bonds?
is a payment order for a pre-specified amount of money and is purchased at different types of stores – it is used like a check. They are usually limited in maximum face value to some specified figure (for example, the United States Postal Service limits domestic postal money orders to US $1,000.00. US Postal money orders are hard to counterfeit.
What is a money order?
A refund anticipation loan (RAL) is a short-term consumer loan secured by a taxpayer’s expected tax refund
What is tax anticipation loans?
an item (house, car, appliances, etc…) to guarantee the loan. An unsecured/uncollateralized loan is a personal loan – secured
What is a collateralized loan?
will cover your bills while you are disabled or cannot work, with an injury or illness for a certain amount of time. Doesn’t replace income.
What is Disability insurance?
short-term loans sold to operate the U.S. government. Amounts invested range from $1,000 to $5 million per investor.
What are Treasury Bills?