Personal Finance

The amount deposited to save or invest is called what? Principal
an amount paid to use someone’s money, a percentage of the principal Interest
Simple interest formula is I=PRT True
In the compound interest formula, n stands for number of compounding periods. True
earning interest on previously earned interest plus the principal amount Compound Interest
the rate at which the general level of prices for goods and services is rising Inflation
an item of value that you own and can be converted into cash Asset
something owed to another person Liability
degree to which an asset gains (or loses) value over a given period of time Rate of Return
lending money to a government or company Bonds
Ownership in a company Stocks
NASDAQ is a physical location on Wall Street to buy/sell stocks False
Spreading out risk into different types of investments Diversification
Uncertainty of achieving a desired result Risk
The less risk in an investment, the more return False
IRA stands for Individual Retirement Account
A house is an example of an asset True
A mortgage is an example of a type of liability True
Which is usually riskier? Stocks
A deposit would appear as a credit on your bank statement True
Name appearing after “Pay to the order of” is known as the “Payee” True
Monthly document showing all transactions in your account. Bank Statement
Member-owned financial institution Credit Union
Shareholders own financial institution Bank
Checks which the bank has paid Cleared Checks
Book in which you keep records of checks, deposits, transactions, and withdrawals Check Register
A credit card and debit card are the same thing. False
EFT stands for Electronic Funds Transfer True
Credit unions are not for profit and banks are for profit organizations True
Investment comprised of variety of stocks and bonds; typically instant diversification Mutual Funds
Simple interest and compound interest are the same thing False
PYF stands for Pay Yourself First True
Interest rate the user of a credit card will pay as a yearly percentage APR
nyone who owes money; a borrower Debtor
Someone extending credit to others; a lender Creditor
Making purchases now and paying for them later Credit
Having a low FICO score could keep you from getting a loan True
4 categories that make up credit score are:Credit mix, New credit, Length, & Amounts owed False
It is better to overestimate your expenses when preparing your monthly budget. True
Wage and tax statement, shows gross income, total taxes paid, and deductions W2
W2 and 1099INT sent to you by this date 1/31
Taxes are due on this date 4/15
Employee’s withholding allowance certificate; fill out with new jobs W4
Everyone gets a tax refund False
Your payments each month for insurance Premium
Amount of money paid by you when you file a claim with insurance Deductible
put your signature on something endorse
trying to take more money out of your bank then you have then you get a charge overdrafts
make sure you have the amount of money in your checking account that you think reconcile
shows how much you are putting in a checking or savings account deposit ticket
an amount paid in cash or shares of stock, based on the amount of stock shares owned dividend
Give an example of where you may put money for savings credit union or bank
Give an example of where you may put money for an investment stocks and bonds NASDAQ
Give an example of an asset car
Give an example of liability car loan
Give an example of a stock company vanguard
What form do people use to file taxes with uncomplicated tax situations 1040ez
More reliable you are in paying off your credit the higher your credit score credit score
a paper copy of your credit score credit report
period after due date that you don’t get charged grace period
give someone something to hang onto in return for borrowing collateral
name the 3 credit reporting agencies Equifax, transunion, experian
Payment history 35% amounts owed 30% length of credit history 15% types of credit used 10% new credit 10% credit score categories

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