Category 1
"I pay $100 a month for car insurance" describes paying an insurance _____________.
premium
__________ is a database established by cooperating real estate brokers to provide data about properties for sale.
MLS (Multiple Listing Service)
My insurance policy states that I pay $500 for an insurance claim, then the insurance company will cover the rest up until my policy limit. What I pay in this scenario is called a:
deductible
____________ is a contract, represented by a policy, in which an individual or entity receives financial protection of reimbursement against losses from an insurance company.
Insurance
This U.S. federal government health insurance program subsidizes healthcare for people age 65+:
Medicare
A(n) ________ insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime.
life
If I want to protect my home from potential fire damage, then I should get ____________ insurance.
homeowners
____________ is a public health insurance program in the U.S. that provides health care coverage to low-income families or individuals.
Medicaid
In the U.S., taxes from the previous calendar year are typically due on or around this date:
April 15th
Something of value that someone owes, usually a sum of money (think of a loan) refers to:
a) asset
b) liability
c) shareholders' equity
b) liability
For most of your life, the S& P 500 index (comprised of 500 large publicly traded companies in the U.S.), which is indicator of how well the overall stock market is doing, has shown this kind of stock market:
a) a bull market
b) a bear market
c) neither a bull or bear market
a) a bull market
My house is surrounded by other houses, but my favorite restaurant is surrounded by other restaurants. This is an example of:
zoning
If you voluntarily let your friend drive your car and they get into a fender bender, would your car insurance cover them?
yes
This is the legal document that my landlord provides me (that we both sign) when I agree to live for a year in an apartment that she/he owns:
lease
Say that you buy a house, renovate it for a few months, and then turn around and sell it again for (hopefully) more money that you originally paid for it. You would be considered a:
(house) flipper
This is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of the third party, the beneficiary:
trust
A housing _________ is a run-up in housing prices fueled by demand, speculation, and exuberant spending to the point of collapse.
(housing) bubble
A _________ ____________ is a payment made as part of a large purchase in the early stages of a financial arrangement. The higher this payment is, the lower interest payments will be on the remainder of the loan.
down payment
__________ is the legal process by which a lender (a bank usually) attempts to recover the amount owed on a defaulted loan by taking ownership and selling the mortgaged property.
Foreclosure
The goal of a tax deduction (a.k.a tax "write off") is to decrease your taxable _________.
income
Which of the following is not considered a "major" financial statement for every company?
a) balance sheet
b) income statement
c) 10-K
d) cash flow statement
c) 10-K (this is only required for publicly traded companies)
When your parents tell you that “this item cost X amount when I was in high school in the 1990s or 1980s compared to now”, they are talking about:
a) deflation
b) inflation
c) bear market
b) inflation
__________ is an asset that a lender accepts as security for a loan.
Collateral
This is essentially a long-term loan that you get when you purchase a home if you can't pay for it all out of pocket:
mortgage
A landlord who doesn't want to fix broken pipes and mow the lawn of a property that she/he owns might hire one of these people to do this for them:
property manager
I live in an apartment unit that someone else owns. The person who owns the apartment unit is known as a(n):
landlord
Price appreciation is when the value of an asset (such as a house) goes in what direction?
up
If you decide to go through with this, then you will have trouble receiving loans from financial institutions, and your credit score will be poor for a while:
(filing for/declaring) bankruptcy
This is the most common form of bankruptcy: chapter ___
chapter 7
This is a legal proceeding involving a person or business that is unable to repay their outstanding debts:
bankruptcy
A tax ________ is a reimbursement to a taxpayer of any excess amount paid to the federal government or a state government.
refund
Which of the following statements is not true?
a) Accountants always deal with taxes
b) It is a good idea for every business to have someone who is familiar with accounting
c) Shareholders' equity is what you get when you subtract liabilities from assets
a) Accountants always deal with taxes
The target interest rate that the Federal Reserve sets (they meet 8 times a year to decide what the rate should be set at) is known as:
a) the national interest rate
b) the federal funds rate
c) the S & P 500 rate
b) the federal funds rate
Geographical information systems get most of their information from:
satellites
These people are employed by a local government and determine the value of real property for taxation purposes:
property assessors
Supply, demand, and location usually determine the price of:
real estate
Graveyards and parks are considered this type of real estate: ________ purpose real estate
special purpose real estate
People usually ______ condominium units, while they usually ____ apartment units.
own; rent
How many kinds of real estate are there?
5 (commercial, residential, industrial, land, special purpose)
The land along with any permanent improvements attached to the land, whether natural or man-made, including water, trees, minerals, buildings, homes, fences, and bridges is the definition of:
real estate
A sports agent getting paid based on a certain % of the salary of an athlete that they represent is an example of __________-based payment.
commission
Money going in and out of a company is referred to as cash _______.
flow
Which of the following does not describe a reason why a pro athlete becomes broke?
a) They trust the wrong people with their money
b) They do not keep track of their purchases
c) The league that they are in requires them to save a large portion of their salary that they can't touch until they are 50
c) The league that they are in requires them to save a large portion of their salary that they can't touch until they are 50
The most commonly used way to determine income inequality across a country is known as:
a) GDP
b) the gini index
c) fed funds rate
b) the gini index
These people help negotiate pro athlete player contracts and offer financial advice to them, among other things:
(sports) agents
________ _________ are responsible for all or part of a department's operations or the company's operations, including generating revenue and controlling costs.
General managers
__________ income tax is a type of income tax that is levied on an individual's wages, salaries, and other types of income.
Personal income tax
This is how much money you make (the bottom line) AFTER subtracting for things such as interest, taxes, etc.:
(net) income
This North American pro sports league has a luxury tax instead of a salary cap:
MLB
______________ is the total of all compensation a business must pay to its employees for a set period of time or on a given date.
Payroll
This is a predetermined limit on how much a team can spend on their athletes' salaries:
salary cap
(Not on test)- Albert Einstein called this the 8th wonder of the world- "He who understands it, earns it; he who doesn't, pays it."
compound interest
A resource with economic value that a company controls that will provide a future benefit (e.g. cash) is:
a) asset
b) liability
c) shareholders' equity
a) asset
Currently, on average, women in the United States make this amount of money for every $1 that men make:
a) 78 cents
b) 89 cents
c) 82 cents
c) 82 cents
An economic measure used to decide whether the income level of an individual or family qualifies for certain federal benefits and programs is known as:
a) the gini index
b) the poverty line/poverty rate
c) GDP
b) the poverty line/poverty rate