Saving
Name 3 ways or places where you can store money
Money Market, CDs, Stocks, Bonds, Cash, Savings Account, Checking Account
Are pensions becoming more or less abundant?
Less
Are mortgages installment or revolving loans?
Installment - one lump sum
2 examples of fees that a bank may charge?
overdraft, minimum deposit, ATM fees, maintenance, transfer fees
How much money is secured by FDIC?
$250,000
What is the earliest time you can withdraw funds from IRA or 401k without any penalties?
59 1/2
What is the collateral for a mortgage?
House - foreclosure
Name 2 non deposit institutions?
Investment banks, brokerage, finance or loan companies, insurance companies
Rank these 4 ways to keep money in order of Liquidity: (most to least)
Stocks, Cash, Real Estate, CDs
1. Cash
2. Stocks
3. CDs
4. Real Estate
Who is a 457(b) and 403(b) for?
403(b) - teachers
457(b) - state/local gov't workers
Who are commercial and consumer loans for?
Commercial - businesses
Consumer - individuals
No, not for profit
What is Rule of 72?
Difference between 401k and IRA
401k - employer sponsored
IRA - Individual
5 Cs of Credit?
Character, Capacity, Conditions, Capital, Collateral
3 Cs of choosing institution?
Convenience, consideration, cost
What does FDIC stand for?
Federal Deposit Insurance Corporation
Difference Between Roth IRA and Traditional IRA?
Roth - Tax Before
Traditional - Tax After
What loan has the highest interest rate and is the most dangerous to get in a cycle of taking these loans out?
Payday loans
How many commercial banks in US in 2024? Range of 300 banks.
3,600-4,200
3,928