Financial Concepts
the foundational economic principle stating that the price of a good or service is determined by the interaction between what sellers want to offer and what buyers want to purchase
what is the Law of Supply and Demand
This is the dollar amount you are required to pay out of pocket before insurance benefits begin.
Whay is your DEDUCTIBLE
an investment where you buy partial ownership of a company
what is a STOCK
the tax form you fill out for employers that determines your check deductions
WHat is a W4 form?
The prep work you do to manage your finances in the event of your death.
What is ESTATE PLANNING?
This is the idea that some goods which are more essential to life (ex: water) can be cheaper than non-essential goods (diamonds)
what is THE PARADOX OF VALUE
This is the cost YOU pay each month to have insurance
WHat is a PREMIUM
an investment where you make a loan to an institution in return for high interest payments and your money back after a set time.
What is a BOND?
the official name of the standard IRS form most individual taxpayers use to file their annual federal income tax return
WHat is the 1040?
This measures how much prices rise over time.
What is INFLATION?
The science of how we make financial decisions to get the most out of limited resources
What is ECONOMICS
This insurance protects your cash deposits in the bank
What is FDIC Insurance
professionally managed investments where professional finance managers pool money of many investors into multiple securities
What is a mutual fund?
the tax document used in the United States to report your annual earnings and the amount of taxes withheld from your paychecks
What is a W2?
The total outstanding amount you owe in full (without interest) on a credit card.
WHat is your credit card card BALANCE?
When either the buyer or seller knows more about the item being bartered over
What is ASSYMETRIC INFORMATION
the fixed, flat fee you pay for a specific medical service (like a doctor's visit)
What is a CO-PAY
a type of interest that makes more money by earning interest on your interest
What is COMPOUND INTEREST?
the tax form used to document income you receive throughout the year that is not a traditional W-2 salary, usually for an independent contractor or freelancer
WHat is a 1099 form?
a loan (usually a credit line) that is NOT given out in a specific amount but can be used when desired, for any amount up to a certain limit
the economic principle stating that as you incrementally increase one investment, effort, or factor of production (while keeping other variables constant), the resulting benefit or output will eventually decrease
what is the rule of diminishing returns
auto insurance that pays for bodily injuries and property damage you cause to others in a car accident, but not your own expenses
What is LIABILITY INSURANCE
the first crypto currency ever invented
WHat is BITCOIN?
In multiple years, this American corporation reported paying $0 in federal corporate income taxes despite making billions in U.S. profits
What is AMAZON?
This government aid program supplies nutritional assistance to families in financial need.
What is SNAP or (supplemental nutrition assistance program)?