Economic Awareness
A person who purchases goods and services for personal use
The most common form of percentage-based budgeting
What is a 50/30/20 Rule?
Mandatory payments collected from individuals and corporations by a government entity.
What is a tax?
The term that describes the individual that has to pay back the loan in a loan agreement.
Who is the borrower?
The type of security that is traded in market exchanges such as the NYSE or NASDAQ.
What is a stock?
A general increase in prices and fall in the purchasing value of money
What is inflation?
A type of account you have for any unexpected expenses
What is an emergency fund?
Payments made by individuals and corporations to a government entity based on a certain portion of their income.
What is an income tax?
The type of interest rate that stays the same over the period of the loan.
What is a fixed interest rate?
The type of retirement plan offered by employers.
What is a pension plan or 401(k)?
Reduction of the general level of prices in an economy
What is deflation?
Clothing, shelter, heat and medical care
What are necessities?
purchase price x tax rate =
How to calculate a sales tax?
The type of loans used for buying a house.
What is a mortgage loan?
The type of stock that has its value traded based on the company's potential performance in the future
What is a growth stock?
A proportion of a loan that is charged by percentage of the original principal. Also sometimes known as a range which banks borrow and loan excess reserves.
What is an interest rate?
Your lender gives you a set amount of money to buy the home. You agree to pay back your loan with interest over a period of several years
What is a mortgage?
A part of the U.S. Department of the Treasury and is responsible for enforcing and administering federal tax laws
What is the IRS?
The system that credit scores use.
What is a FICO model?
The types of stocks that have well established finances and sound reliability in terms of performance and revenue.
What is a blue chip stock?
The degree to which a demand or supply is sensitive to changes in price or income.
What is elasticity?
A reduction in the value of an asset with the passage of time, due in particular to wear and tear
What is depreciation?
A review/examination of an organization's or individual's accounts and financial information to verify the reported amount of tax
What is a tax audit?
The federal program that allows you to determine your financial aid ability for colleges.
What is a FAFSA form?
The average yearly return of the stock market.
How much is 10%?