Money Management
What is the process of creating a budget and sticking to it in order to manage one's finances?
Budgeting
What is a mutual fund?
A mutual fund is a type of investment vehicle that pools money from many investors to purchase securities, typically with the goal of diversifying the portfolio and spreading risk.
What is a dividend?
A dividend is a distribution of a portion of a company's earnings to shareholders.
What is the difference between a debit and a credit card?
A debit card is linked to a checking or savings account and spending is limited to the amount of money in the account, while a credit card allows the cardholder to borrow money up to a certain limit.
What is the name for a type of loan that is typically used to purchase a home?
Mortgage
What is the process of investing money in order to make a profit or earn income?
Investing
What is a bond?
A bond is a debt security that pays periodic interest and repays the face amount on maturity.
What is the name for a type of investment that involves buying and holding assets for the long-term?
Buy and hold strategy
What is an exchange rate?
An exchange rate is the rate at which one currency can be exchanged for another.
What is the name for a type of loan that is typically used to purchase a car?
Auto loan
What is the stock market?
A marketplace where publicly traded companies' stocks are bought and sold.
What is a stock?
A stock is a unit of ownership in a company.
What is the name for a type of investment that allows investors to purchase shares in a publicly traded company?
Stock
What is the name for the percentage of a loan or deposit that is charged as a fee for borrowing or lending money?
Interest
What is the name for a type of loan that is typically used to finance a small business?
Small business loan
What is the difference between a secured and an unsecured loan?
A secured loan is a loan that is backed by collateral, while an unsecured loan is not backed by collateral.
What is the name for a type of investment that involves buying and selling assets quickly to take advantage of market fluctuations?
Day trading
What is a bull market?
A bull market is a market condition in which the prices of securities are rising, and widespread optimism causes the positive sentiment to be self-sustaining.
What is the name for the physical currency that is used as a medium of exchange?
Cash
What is the name for a type of loan that is typically used to pay for education?
Student loan
What is the annual percentage rate (APR)?
The annual percentage rate (APR) is the interest rate charged on a loan, expressed as a yearly rate.
What is a robo-adviser?
A robo-adviser is an online investment management service that uses algorithms to provide investment advice and manage portfolios, typically at a lower cost than a human financial advisor.
What type of loan is typically secured by a piece of property, such as a house or car?
Secured loan
What is the name for the digital currency that is used as a medium of exchange?
Cryptocurrency
What is the name for a type of loan that is typically used to pay for personal expenses?
Personal loan