Extra Credit
The percentage of your credit limit that you are currently using, calculated by dividing your total credit card balances by your total credit limits.
What is a credit utilization ratio?
A fee charged by banks or ATM operators when you use an out-of-network ATM to withdraw cash.
What is an ATM fee?
the government backs its currency with a reserve of gold, and currency can be exchanged for a specific amount of this precious metal.
What is the "gold Standard"?
A loan which is a personal loan used to pay off multiple debts, combining them into one single payment, often with a lower interest rate.
What is a debt consolidation loan?
This provides financial protection against accidents, theft, and other vehicle-related damage. It is required to ensure that drivers can cover the costs of damages or injuries they may cause while driving.
What is auto insurance?
a card which requires a cash deposit as collateral, This serves as your credit limit. It is different from a traditional credit card, which does not require collateral and has a credit limit based on your creditworthiness.
What is a secured credit card?
A service that allows transactions to go through even if you do not have enough money in your account, typically by linking to a savings account or line of credit. The bank usually charges a fee for this service.
What is overdraft protection?
Due to market speculation, the federal reserve “called in” it’s loans. the stock market crashed, wiping out billions of dollars in wealth. This crash undermined consumer confidence, leading to a reduction in spending and investment. As stock prices fell, people lost confidence in the banks, leading to mass withdrawals in what are known as "bank runs." Banks, unable to meet the sudden demand for cash, failed by the thousands.
What is the great depression?
The debt snowball method involves paying off debts from smallest to largest balance, while the this method focuses on paying off debts with the highest interest rates first.
What is the "debt avalanche" method?
Daily Double!!!
items such as late payments which generally remain on your credit report for seven years from the date of the first delinquency.
what are negative items?
a type of savings account that often offers higher interest rates and allows limited check writing. It differs from a regular savings account in that it may require a higher minimum balance and offer more flexible access to funds.
What is a money market account?
A theory which explains how the prices of goods and services are determined in a market based on the interaction between sellers (supply) and buyers (demand). The equilibrium price is reached when the quantity supplied equals the quantity demanded. Changes in supply or demand can shift the market equilibrium, affecting prices and quantities
what is the theory of supply and demand?
A period of time during which you are allowed to pay your bill without incurring a late fee or additional interest charges.
What is the grace period?
The amount of money you must pay out of pocket before your insurance company will pay for a covered loss.
What is a deductible?
A tool that restricts access to your credit report, making it harder for identity thieves to open accounts in your name. It is often used after a data breach or identity theft.
What is a credit freeze?
A check guaranteed by a bank, drawn on the bank’s own funds, and signed by a cashier. It is often used for large transactions where the seller wants to ensure the funds are available.
What is a cashier’s check?
A currency which has value because a government decrees it as legal tender and people have confidence in its stability and purchasing power. Unlike commodity money, this currency is not backed by physical assets like gold or silver but instead relies on trust in the issuing authority and the economy's strength.
What is fiat currency?
A temporary pause on loan payments, typically used when a borrower is experiencing financial hardship or is enrolled in school at least half-time.
What is a student loan deferment?
A policy that pays a sum of money to a designated beneficiary upon the insured person's death. The two main types are term life insurance, which covers a specific period, and whole life insurance, which covers the insured's entire life.
What is life insurance?
A credit score considered excellent and indicates that a person is a low-risk borrower, often qualifying them for the best interest rates and terms on loans and credit cards.
What is a credit score of 800 or above?
a savings product that offers a fixed interest rate for a specified term. In exchange for keeping your money in the account for the term's length, you receive a higher interest rate than a regular savings account.
What is a certificate of deposit (CD)?
When King George the III outlawed the interest free independent currency the colonies were using and forced them to borrow money from the central bank of England with interest causing economic hardship and this war.
What is the revolutionary war?
This can significantly lower your credit score and remain on your credit report for up to 10 years, making it difficult to obtain new credit.
What is bankruptcy?
Income replacement if you are unable to work due to illness or injury. It is important because it helps protect your financial stability in case of a long-term disability.
What is disability insurance?