Personal finance
A percentage paid to a lender for the use of borrowed money is called
interest
What has historically had the highest rate of return over long periods of time?
Stocks
Long term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score
Default
The number of days between a borrower's statement date and when payment is due, often without accruing interest
Grace period
something, typically money, that is owed or due
Debt
What is a bear market?
A time when stock prices are falling
What is a key component of debt management in personal finance?
Paying off debts on time and minimizing interest charges
Something valuable that the lender can take as payment if you can't or don't repay your secured loan
Collateral
Why are payday loans so much easier to qualify for than traditional bank loans?
Payday loans require proof of employment or other regular income but not a credit check
Designed for holding money you don't plan to spend immediately
savings account
The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender
Minimum Payment
Account that is Ideal for everyday transactions
Checking Account
What best describes what a cognitive bias is?
An error in the way we think that can influence our decisions
Paying more than the minimum monthly payment allows the extra money to go towards the ?
Principal
The pain of losing a $20 bill is felt more than the joy of finding it. This is a result of...
Loss aversion
What does FDIC Insured mean?
The federal government will repay your deposits of up to $250,000 if the bank fails.
What is a bull market?
When stocks are on the rise
A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front
Mortgage
When is a W$ Given by an employer?
First day(s) of work
Investments of time, effort, and money that cannot be recovered are...
Sunk costs
The degree of uncertainty on how likely the investor is to make money on an investment
Risk
Do I want to pay taxes now or later? Is a question associated with which type of account(s)
Roth IRA or a Traditional IRA?
What is a brokerage account used for?
It’s a type of account used to buy and sell stocks, bonds, and funds
What is the purpose of a W2 form?
You use them to file taxes
Putting more value on an object you own for more than its actually worth is an example of...
Endowment effect