Week One:
Banking Basics
Banking Basics
This type of banking card allows you to make purchases with money borrowed from your bank
What is a Credit Card
The marketplace where shares of companies are traded
What is the Stock Market
An agreement between a renter and landlord
What is a Lease
This term describes a general rise in prices
What is Inflation
The two elements needed to build wealth is through investing is 1) Money and 2) _______
What is Time
This is an account that a depositor uses where the bank pays you interest (low amount) for letting it use your money
What is a Saving Account
A type of investment in which you 'loan' money to companies or the government for a fixed period of time and earn interest.
What is a Bond
Having someone take care of/cover the cost of maintencance is a benefit of _______
What is Renting
A product or service a country sells to another country
What is an Export
A type of saving account that is set up to help cover the cost of unexpected expenses
When someone puts money into their bank account, this is called a ______
What is a Deposit
Diversification, or buying different types of investments, helps reduce your
What is Risk
A lump sum of money paid by a home buyer at the time of purchase
What is Down Payment
This factor of production refers to tools, machinery, and other physical assets used to produce goods and services
What is Capital
The intial amount of money you deposit or invest is called
What is the Principal
Wells Fargo, Bank of America, and Chase are examples of this type of bank
What is a Retail Bank
This type of market occurs when prices in a financial market are on the rise/expected to rise.
What is a Bull Market
The average amount needed for housing, food, clothes, and other goods /services
What is Cost of Living
The United States falls under this type of Economic System
What is a Mixed Economy
The First Foundation of Personal Finance is to build an emergency fund of
What is $500
This factor has the biggest impact on your credit history your credit score
What is Payment History
A retirement savings plan offered by an employer to its employees who contribute money from their gross pay
What is a 401k
This is a type of deposit required by a landlord that is used to cover possible damages
What is a Security Deposit
This economic theory describes the interaction between buyers and sellers for goods and services
What is the Law of Supply and Demand
_______ is interest paid on interest previously earned
What is Compound Interest