money
Sources of income?
wages, rentals, interest, capital, profits, investments, entrepreneurship
CD: What is it and what happens if you cash it before maturity?
it is a time deposit offered at financial
institutions ; penalty if cashed before maturity.
Credit card cash advances?
withdraw cash with credit card ; you pay a
higher interest rate
Term life insurance?
Term life insurance is an insurance policy that will pay a lump-sum benefit to your
family or another beneficiary of your choice, if you die while the policy is in effect. Is not a permanent life
insurance policy.
bear market?
A bear market refers to financial markets that are experiencing a prolonged period of
contraction or loss.
Liquidity—what does it mean
when assets are easily converted to cash
Institutions that give loans?
banks, credit unions, pawnshops, finance companies, payday lenders, tax
preparers
Truth in Lending Act?
Legislation enacted in 1968 requiring
money lenders to be explicit about the true costs of credit transactions. The Truth-in-Lending Act also outlaws
the use of threatened or actual violence to collect debts
co pay?
is the amount of money you pay out-of-
pocket for a covered medical service. Co-pays are typically a flat dollar amount for a doctor's office visit,
prescriptions or lab tests.
Bonds?
a bond is a
financial instrument that gives its holder/owner the right to collect interest payments from the company or
organization that has borrowed money. A municipal bond is a bond that is issued by a city or some type of
governmental agency. Government bodies usually issue tax-free municipal bonds to fund large capital
expenses and improvements, like parks, downtown restorations, schools or airports.
Money orders
is a payment order for a pre-specified amount of
money and is purchased at different types of stores – it is used like a check
Which institutions charge the highest interest rates on loans?
pawnshops, payday lenders, tax
refund lenders, finance companies
Three leading credit reporting agencies?
Equifax, TransUnion, Experian
Renters Insurance?
is insurance you buy to protect you furniture, belongings, etc. in case of a burglary, fire,
or some natural disaster. Also covers liability/injury to others.
Mutual Funds?
is defined as a
professionally managed investment vehicle that is made up of pool of funds collected from many investors
and invested in stocks, bonds, money markets and securities
Opportunity cost?
next best alternative; it is what is given up when a choice is made.
What is a credit union and the advantage of using a credit union?
member owned co-operative financial
institution ; advantage is lower interest rates on loans
The length of debt repayment and impact on cost?
the longer you take to pay back a loan, the more you will
pay in interest and principal overall.
How to reduce the cost of auto insurance?
get good grades, no accidents, good credit, and drive a certain
type of car.
Dividends?
are the earnings given to the people who are shareholders of the company stock
Role of the Treasury Department?
collects taxes, prints money, issues treasury bonds
Compound Interest?
interest earned on interest
Characteristics of predatory loans?
making loans to customers who are poor credit risk (low credit scores) and
making those customers pay extremely high interest rates.
How insurance works?
Insurance policies transfers all or some of the financial impact of unexpected events. Insurance exists to help
individuals recover from the financial consequences of these events by pooling the resources of a large group to
pay for the losses of a small group
Treasury Bills?
are short-term loans sold to operate the U.S. government