Unit 4
The Central Bank of the U.S. that controls the Money Supply is called?
The Federal Reserve
Why do Companies issue Bonds
To grow and expand the company
What is a Bear Market?
Values, Prices Decline over extended period of time.
A Low Deductible means you pay
Higher Premiums
Type of Auto Coverage that protects against: Theft, Vandalism and Hail.
Comprehensive
What function (Use) of money enables us to convert Money to goods and services is what?
Medium of Exchange
Investing Implies what?
Some Risk.
What is a Bull Market?
Prices, Values rise over an extended period of Time.
If you have a mortgage, what sort of insurance do you need.
Property, Homeowner's Insurance.
What allows for Magical Free Money, Interest on Interest
Compound Interest
What is an example of Revolving Credit
A credit Card
When choosing a credit card, what is important?
Choose the one with the lowest APR
Bank is what type of system- they hold on to a fraction of your Money and lend out the Rest---
A Fractional Reserve Banking System.
If you get hurt and cannot work, you need what type of Insurance
Disability
Strategy owning more than 1 stock and spreading out your Risk---
Diversification
What happens when you withdraw money from a CD early?
You pay a Penalty
Why do Banks require collateral?
To reduce the risk of charge offs, risk.
Insurance Protects your Assets and what else?
Your Income
A Mountain Climber would pay higher or lower premiums
Higher
A Parent or Relative that Guarantees the debt on a loan---
Co-Signer.
What is an example of Installment Credit?
Auto Loan
Lending Money does what? (It's a Market Economy Goal)
Promotes Economic Growth
Higher Deductible mean you pay ---
Lower Premiums
Type of Auto coverage that insures damage when you hit another vehicle
Collision
Do not charge more than this amount on your Available Credit Limit to maintain a good credit score.
30%