credit
amount of credit you have relative to the amount of debt you have
what is debt to credit ratio?
the amount the insured person agrees to pay before the insurance company pays anything
what is a deductible?
how easy it is to convert an asset to money
what is liquidity?
interest earned on interest.
what is compound interest?
cost of goods increasing, value of money decreasing
what is inflation?
an item used to secure/guarantee a loan
what is collateral?
will cover costs for damages you are responsible for to another persons vehicle
what is liability insurance?
the next best thing. the option that was given up.
what is opportunity cost?
rule to help figure out how many years it will take an investment to double.
what is rue of 72?
when someone has multiple investments in different things to create a more reliable investment portfolio.
what is diversification?
the number that tells the creditworthiness of a person.
what is credit score?
this covers costs for damages when someone collides with your vehicle
what is collision coverage?
profit made from an investment that was held for a period of time.
cooperative financial institution ran by its members
what is a credit union?
when financial markets are experiencing are experiencing a prolonged period of loss.
what is a bear market?
if you are in credit card debt and only pay the minimum monthly payment, it will take longer to pay off your debt.
what is the consequence of making minimal monthly credit card payments?
this is life insurance that holds cash value
what is whole life insurance?
wages, profits, entrepreneurship
what are sources of income?
these institutions charge the highest interest rates on loans
what is (pawnshops or payday lenders or tax
refund lenders or finance companies)?
earnings given to shareholders of a company's stock.
what are dividends?
the three leading credit reporting agencies.
what are equifax, transunion, and experian?
safe car, good grades, no car accidents
what are ways to reduce the cost of your auto insurance?
to issue treasury bonds, collect taxes, and print money.
what is the role of the treasury department?
these institutions give loans
what are banks/credit unions/ finance companies?
short term loans sold to operate US government. investments range from $1000 to $5 million per investor.
what are treasury bills?