T bills are short term securities that mature in one year or less from their issue date. They are relatively risk free since they are backed by the government. They are issued in denominations as low as $1000.
100
What does pay yourself first mean?
With each paycheck, put aside some in savings.
Emergency fund= 3-6 months of income
100
If you are under the age of 21, this is the only way you can be issued a credit card?
Have an adult co-signer or show proof that you have enough income to repay the card debt
100
Describe our progressive tax system
The more money you make, the higher your tax bracket = the more you pay in taxes
200
What organization protects the public by monitoring stock markets and brokers as well as enforces the laws concerning the buying and selling of stocks?
What is the SEC (Securities Exchange Commission)
200
What concept is this phrase describing: The best time to plant a tree is 20 years ago...the second best time is now
What is inflation
200
Which insurance is usually less money, term or whole life and why?
Term because you are only paid the death benefit / face value
200
What is one good practice of having a credit card?
pay in full each month, do not lend to friends, avoid finance charges and late fees, avoid being a co-signer, watch the APR being charged
200
What is FICA and who does it assist?
Mandatory social security deductions
The elderly (retirees) and disabled
300
True or False: You must report all capital gains and losses to the IRS
True
300
Describe what this phrase applies to: The higher the risk, the higher the return
When investing, the higher the risk (stocks, junk bonds...etc) has the potential to yield the higher profit. Low risk investments yield lower returns.
300
Men pay _________ than women for car insurance.
Married people pay ________ than single people for insurance.
more
less
300
Generally, the longer the period of time for the loan, the __________________ the total cost of the loan and the price of the product
greater
300
What role does the FED (Federal Reserve) play?
Studies monetary policy in order to speed up (stimulate) or slow down the economy.
The FED is the bank of the federal government and regulates financial institutions
400
This is the largest stock exchange
What is the NYSE
400
What concept does this phrase apply to: Don't put all of your eggs in one basket
What is diversification?
400
What is a major feature of an HMO/ managed health care plan?
must see doctor in network
usually must see primary care physician first
400
What is the major disadvantage of getting a cash advance from your credit card?
You are charged a higher interest rate
400
What is the difference between a fixed expense versus a variable expense?
A fixed expense is set each month (rent / mortgage). A variable expense is something that changes (grocery bill, electricity bill)
500
What is the difference between common and preferred stock?
Common stock= shareholders get a vote (most common)
Preferred stock= no vote but shareholders are paid dividends first / before common stock holders
500
Give an example of the phrase: If it sounds too good to be true, it is (too good to be true)
Scams, swindles...etc
500
What are 5 strategies to reduce the cost of your car insurance?
increase the deductible
cancel collision insurance
garage the car
install security alarm
maintain a good driving record
avoid submitting small claims
drivers ed course
driving record w/out moving violations, accidents or tickets
500
What are two factors that have a negative impact on your FICO?
applying for credit or a credit card
opening a new account (new loan)
paying bills late
filing for personal bankruptcy
500
What is the difference between surplus / discretionary income and a deficit
Surplus is extra money from your budget
Deficit is money you don't have in your budget