Earnings and Paychecks
You fill out your W-__ before you start working to let your employer know how much tax to withhold. You receive you W-__ by _________ that tells you how much you earned to help you file your taxes
W-4, W-2, January 31
This type of account is best for making daily transactions like paying bills or using a debit card.
Checking Account
A borrower applies for a loan during a period of rising interest rates and economic uncertainty. The lender considers the purpose of the loan, the state of the economy, and industry risk. This relates to which C—the one that borrowers cannot control but lenders heavily weigh?
Conditions
What is the highest and lowest credit score?
300-850
A home loan is called a
Mortgage
The total you make before money is taken out is ________
The total money taken out is called _______
Your pay after money taken out is called______
Gross Pay, Deductions, Net Pay
This method allows your paycheck to be automatically transferred into your bank account from your employer
Direct Deposit
A lender is deciding whether a loan should require a car title, property, or other valuable asset that can be taken if the borrower defaults. Which C—the one that turns a risky loan into a safer one by backing it with something tangible—are they evaluating?
Collateral
If you don’t carry a balance, this period allows you to avoid paying interest on new purchases.
Grace Period
This is money you pay upfront when buying something expensive, like a car or house.
Downpayment
This type of income is earned when you receive a percentage of the sales you make.
Commission
This term describes how quickly you can access your money without penalties.
Liquidity
A bank notices a borrower has $15,000 in a savings account, $8,000 in investments, and owns their car outright. The lender views these as financial strength indicators under which C—the one measured not by behavior, but by what you already have?
Capital
1. This is the minimum amount you must pay each month to keep your credit account in good standing.
2. If you pay this amount your remaining balance will be charged _______
This type of loan requires property or another valuable item to guarantee repayment.
Secured Loan
What are the two FICA taxes and their rates?
What does FICA Stand for?
Social Security 6.2, Medicare 1.45, Federal Insurance Contributions Act
The ______ protects deposits in banks up to_____. The acronym stands for ________
FDIC, $250,000, Federal Insurance Contributions Act
A borrower has stable income and a low debt-to-income ratio, but only a small emergency fund. A lender worried about their ability to handle unexpected expenses is examining which C—the one that answers “Can this person actually afford more debt?”?
Capacity
This type of short-term loan from your credit card typically has higher fees and interest rates.
Cash Advance
This person agrees to take responsibility for a loan if the borrower fails to pay.
Cosigner
1. This workplace benefit lets you save for retirement with pre-tax money, while its counterpart,
2. a similar account, grows tax-free after contributions.
1. 401K, Roth IRA
1. This type of savings option locks your money for a set term,
2. this government-issued investment earns interest over many years,
3. flexible account offers higher interest rates while still allowing limited transactions.
CD, Savings Bond, Money Market Account
A lender reviewing your history of paying bills on time, keeping credit card balances low, and responsibly managing past loans is evaluating which of the 5 Cs—the one that can’t be pledged, traded, or deposited, but matters the most?
Character
What are the three tools the federal reserve has to influence the economy?
Reserve ratio, Open Market Operations, Discount rate
1. This type of loan requires the borrower to pay the entire amount back all at once.
2. This type of loan is repaid in scheduled portions over time, such as with car or student loans.
Single Payment, Installment Loans