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80 Cards in this Set
- Front
- Back
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What is the most total spending? |
consumer spending |
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What must you have before you purchase things? |
income |
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What is a person called who buys goods or services? |
consumer |
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What do a lot of people do when they feel they are in a good situation/future? |
spend more |
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your wealth after debts and obligations |
net worth |
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Higher return = ______ risk |
Higher return= less risk |
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Which makes you more money: simple or compound interest? |
Compound (you raise the flag at simple) |
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longer term, CD's (certificates of deposit)…higher of lower saving? |
higher |
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Which are more risky: stocks or cd's |
stocks |
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What are the steps (3) for personal finance |
1.set personal goals 2. estimate earned income 3. plan expenditures |
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What is the luxury of a credit card? |
you can enjoys things before full payment |
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Why shouldn't you put money under your mattress? |
savings & interest |
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What do you pay if you do not pay full principal money borrowed? |
interest |
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When consumer prices rise, purchasing power of the dollar…. |
goes down |
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Is it possible to have a credit card w/out annual enrollment fee? |
YES |
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when you get interest on the money you have already deposited and interest already earned? |
compound interest |
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What does APR stand for |
Annual Percentage Rate |
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You lend some amount of money…charge 1% interest per month= |
12% |
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T/f…does a store pay a fee as well when you pay with credit there? |
true |
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how easily you can turn savings into cash |
liquidity |
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What are personal finance plans called? |
budgets |
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Are you guaranteed to get a credit card or loan? |
No |
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If you consistently use credit cards, bills are sent_____. |
monthly |
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A risk becomes a financial disaster if you don't have what? |
insurance |
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money you pay for insurance |
premium |
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An account with moderate interest rates |
CD's |
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limited checks…bank uses $ for short term loans/investments |
money market fund |
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list two common forms of insurance |
car and house |
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what is the main purpose of life insurance |
provide $ for your family for when you die |
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a # of shares in ownership of a corporation |
stock |
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What is the least expensive life insurance |
term |
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the type of insurance that protects against something health related of accident related |
health insurance |
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What are IOU's? |
corporate bonds |
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Can you buy health insurance if your employer does not offer it? |
yeppppp |
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list 2 events covered by car insurance |
accident & theft |
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If you rent a house, what would you need property insurance for? |
Everything that you own |
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What you are loaned a car, the ____ requires you to have insurance too |
When you are loaned a car, the lender requires you to have insurance too |
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special investment companies where people pool their money |
mutual funds |
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What does liability protect? |
home owners when people are injured on your property |
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spreading your risk so that all your savings are protected |
diversify |
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auto liability rate are _____? |
high |
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Whats the difference b/t bonds, note, bills? |
the time difference before the loan is repaid |
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3 major types of life insurance |
term, whole, universal |
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is it legal for the gov't to restrict market competition? |
YASSSSSSSSS |
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What does liability insurance protect for auto? |
injuries/ damage caused by Y.O.U. (biatch) |
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What commission was created by congress to protect consumers |
consumer product safety commission |
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a local association to promote and protect the interests of the business community in particular place |
chamber of commerce!!! |
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What is a return for allowing banks to use money |
Interesttttttttt |
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Money will grow fast if it is compounded _____ often. |
Money will grow fast if its compounded less often. |
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Liquidity has ____ interest rates |
shawty get low low low low |
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What is an IRA |
individual retirement account |
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retirement plan provided by a private employer |
401(k) |
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companies with stock are allowed to distribute ___ profit to stockholders |
dividend |
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special IOU's by treasury |
US bond |
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$ to pay for credit |
finance charge |
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advantages of credit |
immediate possession flexibility interest free loan |
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disadvantages |
over spending higher cost |
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what is a long term loan to purchase home/condos |
mortgages |
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good credit, repays loan if you cannot |
co-signer |
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Why is it not good to pay minimum for credit? |
you pay more interest |
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calculates offs of risks occuring |
actuaries |
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term insurance |
set amount of time |
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whole insurance |
whole life |
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universal |
flexible |
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group medical coverage for a small fee |
HMO |
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health insurance with a primary care physician |
managed care |
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Bill of Rights states….(4) |
right to choose,safety,be informed, heard |
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Why are there departments for questions for consumers |
b/c of bill of rights and to satisfy consumer wants and needs |
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backbone of free market is |
competition |
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FDA |
Food and Drug Administration |
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sets standards for business ethics |
Better Business Bureau (BBB) :) |
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What are the three types of incomes |
earned, passive, and portfolio |
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list the 3 incomes by rank of taxation rate by gov't |
earned, portfolio,passive |
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what is earned income |
$ you make from your job -salary,wages,tips |
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what is passive income |
$ you make off of material assets -rental properties -real estate -collectibles |
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wat is portfolio income |
$ you make off of your paper assets -stocks -bonds -mutual funds |
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what is the progressive tax of earned income percentage |
20-39% |
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What is portfolio income taxed at |
17% |
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what are passive and portfolio incomes called |
investment incomes |
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what does portfolio income include |
capital gains tax |
