Money
Next best alternative
What is opportunity cost
The amount of available credit you have relative to the amount of debt you carry
What is Debt to Credit Ratio
Covers your bills while you are disabled or cannot work with an injury or illness for a certain amount of time
What is Disability Insurance
Refers to a financial market that experiences an extended period of growth above the historical averages
Bull Market
This is a period of time in which the economy has reached the lowest point possible
What is Depression
Wages, rentals, interest, capital, profits, investments and entrepreneurship
What is sources of income
The number representing the creditworthiness of a person
What is Credit Reports
Insurance you buy to protect your furniture, belongs, etc. in case of a burglary, fire or some natural disaster
What is Renters Insurance
Refers to financial markets that are experiencing a prolonged period of contraction or loss
What is Bear Market
This is the central banking system of the United States
What is the Federal Reserve (FED)
Allowance is used to reduce the amount of taxed income (also known as allowance)
What is Exemption
a store that lends money in exchange for a valuable thing that they can sell if the person leaving it does not pay an agreed amount of money by an agreed time
What is Pawnshop
The amount of money you pay out-of-pocket for a covered medical service
What is co-pay
This is when an investor has different types of investments. Not putting "all your eggs in one basket"
What is Diversification
This is the most popular policy today. This is when the Fed buys and sells treasury bonds
Open Market Operations
The amount of money left over after paying taxes and essential expenses
Discretionary Income
Making loans to customers who are poor credit risk (low credit scores) and making those customers pay extremely high interest rates
What is characteristics of predatory loans
Insurance policy that will pay a lump-sum benefit to your family or another beneficiary of your choice, if you die while the policy is in effect. Is not a permanent life insurance policy
What is Term Life Insurance
Earning given to the people who are shareholders of the company stock
What are dividends
This is a board of five members. They regulate the offer of and sale of securities among the public
The SEC (Securities and Exchange Commission)
Collects taxes, prints money, issues treasury bonds
What is the Role of the Treasury Department
Outlaws the use of threatened or actual violence to collect debts. Also called the Consumer Credit Protection Act
What is Truth in Lending Act
It is referred to a permant life insurance because as long as you pay your premiums the policy is your for life, proving your loved ones with a guaranteed benefit upon your death
What is Whole Life Insurance
Defined as a professionally managed investment vehicle that is made up of a pool of funds collected from many investors and invested in stocks, bonds, money markets
What is Mutual Funds
An independent U.S. government agency that insures deposits in the event of a bank failure.
What is the FDIC (Federal Deposit Insurance Corporation)