Financial Choices
What are fixed expenses?
A general increase in prices over time
What is inflation?
An account set aside in case of an unexpected financial burden.
What is an emergency fund?
The actual amount of money being borrowed (not the interest or fees)
What is the loan principal?
Experian, TransUnion and Equifax
What are the 3 credit bureaus?
Items necessary for survival versus items that are luxury
What are needs and wants?
As the price of a good increases, the ___________ of the good will also increase (all other factors held constant).
What is supply?
A financial summary of anticipated income and expenditure.
What is a budget?
Money put into a bank account
What is a deposit?
A numerical ranking of an individual's credit-worthiness based on a statistical analysis of their credit history.
What is a credit score?
Debts or things people owe which lower their net worth.
What are liabilities?
As the price of a good increases, the ___________ of the good will decrease (all other factors held constant).
What is demand?
Expenses that change from month to month such as entertainment, food, or electricity.
What are variable expenses?
This rate does not compound. It is a set rate at which money increases.
What is simple interest?
A summary of your financial history. The summary is generated by the credit bureaus and is used by potential lenders.
What is a credit report?
Every time you make a choice, you decide on the most valuable choice, the second alternative is the _________________.
What is an opportunity cost?
A type of economy where products, services and prices are determined by the market and not by the government.
What is a free enterprise system?
The amount of money a person/family should have in accessible savings?
A financial institution owned by its customers, also known as members.
What is a Credit Union?
An organization hired by a lender to seek and obtain a debt from one of their consumers. These organizations can report to the credit bureaus and negatively impact the consumers credit score.
What is a collection agency?
Assets - Liabilities =
What is Net Worth?
The measure of price changes paid by consumers for a specific set of goods and services.
What is CPI or consumer price index?
An actual recollection of cash flow.
What is record keeping?
The government corporation which insures bank accounts up to $250,000
What is FDIC or Federal Deposit Insurance Corporation?
The interest rate for one year.
What is the APR or annual percentage rate?