Investing and planning
A market that experiences an extended period of growth
Bull Market
The fee the bank charges you to borrow their money
Interest
A number representing the “creditworthiness” of a person.
Credit Report Score
A guarantee that you will pay and repair damages to the other person’s car when you cause the accident.
Auto liability coverage
what is the Treasury Department?
The government agency charged with collecting taxes, printing currency, and issuing government bonds.
what is a Bear Market?
a market that experiences an extended period of of contraction
What is the Certificate of deposit?
a time deposit offering interest to the owner
What is a credit card?
A card that enables customers to make purchases and borrow money.
Insurance against the risk of incurring medical expenses among individuals.
Health Insurance
the interest is only calculated on the original amount of the loan
Simple interest
This is when an investor has different types of investments
Diversification
What is Overdraft protection?
a feature offered by banks to protect their clients against over charging a debit card or “bouncing” a check
Banks and credit companies use risk formulas to determine fees charged on loans.
Calculation of Interest Rate
Will cover your bills while you are disabled or cannot work
Disability Insurance
what is Compound interest?
The interest earned on the profit from an investment
What is a Dividend?
This is the earnings and profits given to shareholders
What is Reserve Requirement?
a regulation on the minimum amount of of reserves a bank must hold
What is Minimum Payment on Credit Card?
Negatively impacts the total amount you pay back to credit card companies
What is Renters Insurance?
Insurance you purchase to protect your furniture, belongings in case of fire or some natural disaster when leasing.
What is Exemptions?
these reduce the amount of taxed income
What is a Mutual Fund?
A diversified investment in which a pooled collection of assets are invested together
a bank holds only a fraction of the deposits in reserve
Fractional Reserve Banking
What is credit to debt ratio?
Amount of available credit you have relative to the amount of debt you have.
What Reduces the cost of auto insurance?
No accidents, good grades, good credit
payment made on interest earned on an investment
Interest paid