Insurance
The amount of the loss which the insured is responsible to pay before benefits from the insurance company are payable. You may choose a higher deductible to lower your premium.
Deductible
acts like a loan or an IOU that is issued by a corporation, municipality or the U.S. government. The issuer promises to repay the full amount of the loan on a specific date and pay a specified rate of return for the use of the money to the investor at specific time intervals.
Bond
a review of your tax return by the IRS, during which you are asked to prove that you have correctly reported your income and deductions.
Audit
a basic economics problem—the gap between limited resources and theoretically limitless wants.
Scarcity
The central bank of the United States
Federal Reserve
Reimburses you for damage to your automobile sustained in a collision with another car or with any other object, movable or fixed, (for example, you accidentally backed into another object while pulling out from a parking stall and causing damage to the bumper and fender of your covered automobile).
Collision car insurance
The process of owning different investments that tend to perform well at different times in order to reduce the effects of volatility in a portfolio, and also increase the potential for increasing returns.
Diversification
based on the taxpayer's ability to pay. It imposes a lower tax rate on low-income earners than on those with a higher income.
Progressive
the loss of potential gain from other alternatives when one alternative is chosen.
Opportunity cost
Which branch of government is in control of budgeting and taxation
Legislative
A licensed person or organization authorized to sell insurance by or on behalf of an insurance company.
Agent
The most commonly used indicator of stock market performance, based on prices of 30 actively traded blue chip stocks, primarily major industrial companies.
Dow Jones Industrial Average
An example of this type of tax is sales tax
Regressive
the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity
Absolute advantage
If too much money is circulating in the economy, what will happen to taxes and government spending
Taxes will increase and spending with decrease
The amount of money an insurance company charges for insurance coverage.
Premium
tracks the performance of many investments as a way of measuring the overall performance of a particular investment type or category. The S&P 500 is widely considered the benchmark for large-stock investors. It tracks the performance of 500 large U.S. company stocks.
Index
North Carolina's state income tax is a
an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners.
Comparative advantage
Who is in charge of monetary policy?
The Federal Reserve
The maximum amount a policy will pay, either overall or under a particular coverage.
Policy limit
a prolonged period of falling stock prices, usually marked by a decline of 20% or more. A market in which prices decline sharply against a background of widespread pessimism, growing unemployment or business recession. The opposite of a bull market.
Bear market
The US federal income tax is a
progressive tax
Adam Smith
Who determines interest rates?
Federal Reserve