Money
Liquidity
the degree of ease in which assets can be sold
Debt to Credit Ratio
A credit-to-debt ratio is the amount of available credit you have relative to the amount of debt you carry.
If you hit a deer
Comprehensive
CD
is a time deposit offered at financial institutions – penalty if cashed before maturity.
bull market
market refers to a financial market that experiences an extended period of growth above the historical averages.
Opportunity cost
next best alternative – it is what is given up when a choice is made
Credit Reports
a number representing the creditworthiness of a person, and the likelihood that person will pay his or her debts. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers
what insurance is required in most states
Automobile
Compound Interest
: interest added to principal – interest earned on interest
bear market
A bear market refers to financial markets that are experiencing a prolonged period of contraction or loss
Role of the Treasury Department:
collects taxes, prints money, issues treasury bonds
Pawnshops are what type of loan
Collateralized loans
the amount you need to pay for insurance
premium
Time value of money
is calculated by value of money with given amount of interest earned over a period of time; the longer the time you keep your money invested, the more interest you will earn.
Mutual Funds
A mutual fund is defined as a professionally managed investment vehicle that is made up of pool of funds collected from many investors
Sources of income:
wages, rentals, interest, capital, profits, investments, entrepreneurship
Credit card cash advances
provided by credit card companies – withdraw cash with credit card – you pay a higher interest rate
Insurance deductible
A deductible is the amount that the insured has agreed to pay before the insurer is obliged to pay anything on a covered claim. The higher the deductible the lower the monthly premium (payment) – the lower the deductible the higher the monthly premium (payment).
Rule of 72
how long (many years) will it take to double an investment
Diversification
is when an investor has different type of investments
Money orders
): A money order is a payment order for a pre-specified amount of money and is purchased at different types of stores
Three leading credit reporting agencies
Equifax, TransUnion, Experian
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.
Tax anticipation loans
A refund anticipation loan (RAL) is a short-term consumer loan secured by a taxpayer’s expected tax refund
Dividends:
Dividends are the earnings given to the people who are shareholders of the company stock