Banking
What are the 2 types of banking accounts?
Checking Account, Savings Acoount
What is a Budget?
A way to balance Income, expenses and financial goals for a specific length of time.
What is APR?
Annual Percentage Rate
What is Insurance?
Contract for financial protection from risk or loss
What is a Stock?
Share of ownership in a company
What are the 3 functions of money?
Medium of exchange, unit of account, store of value
Which budget method require physical Cash?
Envelope budget
What is the difference between Secured and unsecured loans?
Secured: guaranteed by collateral, Unsecured: not guaranteed by any collateral.
What are the types of insurance?
Auto, Health, Renters
What is a stock exchange?
Each place where stocks are bought and sold
What are the types of savings accounts?
Traditional, online or high-yield, CD- certificate of deposit, Money Market Account
What is a zero based budget?
Every dollar assigned to a different specific expence
Who protects your credit assets?
The Consumer Finance Protection Bureau(CPFB) and the Fair Credit Reporting Act (FCRA)
What is a Deductible?
Amount you pay before insurance benefits pay
What are the 2 types of trends in a Stock market?
Bull Market (Increasing) and Bear Market (Decreasing)
What is Inflation?
General Increase in prices
How does a 50/30/20 budget work?
50 percent to needs, 20 percent to saving, 30 percent to wants
What is an Installment Loan?
Specific purchase, Specific amount of time. Regular equal payments of principal+interest.
What is an Underwriter?
Receives premium in exchange for covering potential financial losses
What is a ETF?
Basket of investments like stocks or bonds-traded directly on an exchange
What is FDIC insurance?
Government protection for money in bank accounts (up to 250,000)
What is the Endowment Effect?
Assigning more value to Things we already own
What is Revolving credit?
Open line of credit for any purchases(within the limit). Payments depend on the money borrowed.
What is a Actuary
They are a professional who analyzes risk and calculates premium needed to cover potential loss payments.
What is a Market Index?
Hypothetical portfolio of investment holdings that represents a segment of the financial market.