Banking
The name of the insurance that your money is covered by when you put your money in a bank or credit union
What is FDIC or NCUA
On credit card bill, this charges a higher rate of interest than purchasing goods
What is a cash advance
What happens to insurance premiums when the insured becomes a higher risk
What is they go up
A sustained period where stock prices fall significantly
What is a Bear Market
The cost of what you gave up in a trade off
What is Opportunity Cost
The reason that a secured loan normally charges lower interest
What is collateral
Casey chooses to pay the minimum balance on his credit card...what happens next month?
What is he will be charged interest on the remaining balance
When you call your insurance company to let them know something happened (e.g. car accident, home was burglarized, you had emergency surgery)
What is a claim
The reason a company goes public (IPO)
What is to sell shares to the public for capital and growth, liquidity for the angel investors and brand prestige
Assets - Liabilities
What is Net Worth
Collateral for a car loan
What is the car
The cost of using someone else's money
What is interest
This type of insurance pays out when you are injured/ sick and am unable to work
What is disability insurance
The Federal agency that regulates the stock market
What is the SEC (Securities and Exchange Commission)
Two types of expenses: One stays constant(the same) every month while the other changes
What are Fixed and Variable
This creates a restricted endorsement on a check
What is For deposit only
Top two factors affecting your credit score
What is payment history(35%) and credit utilization (30%)
(paying bills on time and keeping credit balances low)
Many believe this is the most important of all benefits offered by an employer
What is health insurance
The investment strategy that enables you to not "put all your eggs in one basket
What is a investing in a mutual fund (index fund)
Federal law requiring lenders to provide consumers w/ clear, standardized information
What is the Truth in Lending Act
Why writing a check out to cash is risky
What is it could be cashed by anybody
In longer loan term (period of time), both the cost of a loan and the monthly payment is affected how
Cost of the loan increases and the monthly payment decreases
Two types of Life insurance: one you have for a specific period of time while one you keep forever and has an investment component to it
What are term and whole
This happens when there is too much money in circulation
What is inflation
The tax that is taken out of your gross pay before you even get your paycheck
What is FICA (Social Security and Medicare) (also Federal and state tax)