Stocks & Banking
__________________ is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
Stock
Which feature is more likely to be found in a savings account than a checking account?
Higher interest rate
Which term refers to the amount a person must pay before insurance begins to cover costs?
Deductible
The amount of money you actually take home after taxes
Net Income/ Net Pay
Something valuable used to secure a loan
Collateral
_______________________________ is a risk management strategy that involves spreading investments across various financial instruments, industries, and categories to minimize exposure to any single asset or risk.
Diversification
What is equity?
The owner's residual interest in assets after deducting liabilities. For businesses, this represents shareholders' ownership; for individuals, it's often measured in home equity or investment portfolio value.
is the percentage of costs you pay for a covered service after you have met your deductible, with your insurance company covering the rest.
Coinsurance
The amounts taken out of your paycheck for things like taxes, insurance and retirement
Deductions
This shows the true yearly cost of a loan, including fees.
APR
What is the primary operational difference between a commercial bank and a credit union?
_____________________________ is the process of gathering information about products to find the best option among similar products.
Comparison Shopping
is the original amount of money borrowed in a loan or the initial sum put into an investment, separate from any interest, fees, or earnings.
Principal
This shows how much money you earned in the year and how much you paid in taxes.
W2 Form
This type of loan is repaid in fixed payments over time
Installment loan
What is the one reason for stock prices to constantly change?
Company performance
_______________________ occurs when interest is added to the principal sum, and from that moment on, the interest earned also earns interest.
Compounding (compound interest)
What is the primary purpose of health insurance?
To reduce financial risk from medical expenses
A retirement account where contributions are made with after-tax dollars and withdrawals are tax-free in retirement.
Roth IRA
Medicaid eligibility is mainly based on
Income level
When a check is written but the processing bank has not yet deducted the funds from the payer's checking account, what is the status of the check?
Outstanding check
Which individual component has the largest impact on a standard FICO credit score calculation?
Payment History
Which type of health plan typically has the lowest monthly premium but the highest deductible?
HDHP
When money is transferred from one retirement account into another without penalties.
Rollover
A defined-benefit plan guarantees
A specific retirement payment