Financial Stewardship Final

Front 1

*Define personal financial planning

Back 1

Systematic process that considers important elements of an individual’s financial affairs in order to fulfill financial goals

Front 2

*what are the three types of personal financial statements

Back 2

balance sheets, income and expense statements, budgets

Front 3

*define present value

Back 3

The value today of an amount to be received in the future.

Front 4

*define taxes

Back 4

Dues we pay for membership in our society

Front 5

*What are the components of the taxable income (4)

Back 5

Gross income, adjustments to gross income, deductions, exemptions

Front 6

*what are some of the tools used for tax planning? (3)

Back 6

do it yourself
private tax preparers
computer-based tax returns

Front 7

*The phase of the economic cycle when an expansion ends and a contraction begins is called

Back 7

Peak

Front 8

*The government's other principal tool for managing the economy is ___________ policy - its programs of spending and taxation.

Back 8

fiscal

Front 9

*Medical expenses are categorized as______________ expenses

Back 9

variable

Front 10

*Define Cash Management

Back 10

routine, day-to-day use of liquid assets

Front 11

*4 types of housing needs

Back 11

single family homes, condominiums, co-op apartments, rental units

Front 12

*costs of owning a home (3)

Back 12

down payment, closing costs, mortgage

Front 13

*In the housing market, PMI stands for ____

Back 13

Private Mortgage insurance

Front 14

*When the lessee simply turns in the car at the end of a lease period, the lease is called

Back 14

close-end lease

Front 15

*the loss of value that occurs over an automobile's period of time is called

Back 15

depreciation

Front 16

*what are the two types of open credit accounts

Back 16

bank credit cards, revolving credit

Front 17

*what are the four special types of bank credit cards

Back 17

affinity, rewards, secure, student

Front 18

*state two advantages of credit cards

Back 18

convenience, itemized spending history

Front 19

*ADB is an acronym for

Back 19

Average daily balance

Front 20

*A specified amount beyond which a customer may not borrow or purchase on credit is called

Back 20

credit limit

Front 21

*when your funds must remain on deposit for a specified period of time (7days to as long as 7 years), the savings investment are called

Back 21

CDs

Front 22

*State two tupes of depository financial institutions

Back 22

US Treasury Bonds, CDs

Front 23

*A ______________ check is a personal check that the bank certifies, with a stamp, to guarantee that the funds are available

Back 23

certified

Front 24

T or F: Dividends received from the stock you own will not be taxable income

Back 24

False

Front 25

T or F: The balance sheet provides a measure of financial performance over a period of time

Back 25

False

Front 26

T or F: The third step in the financial planning process is to develop financial plans and strategies to achieve goals

Back 26

False

Front 27

T or F: Liquid assets are stocks, bonds, and mutual funds

Back 27

False

Front 28

T or F: An income statement deficit would increase net worth

Back 28

False

Front 29

T or F: One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account

Back 29

True

Front 30

T or F: A cashier's check is written on the bank's account rather than on a customer's account

Back 30

True

Front 31

T or F: Automobiles tend to increase in value over time

Back 31

False

Front 32

T or F: Credit should not consistently be used for non-durable goods

Back 32

True

Front 33

T or F: A debt safety ratio of 25% might be a signal of financial trouble ahead

Back 33

True

Front 34

Final: Basic insurance concepts (4)

Back 34

Risk, Loss prevention and control, Insurance policies, underwriting

Front 35

Final: Benefits of Life insurance (4)

Back 35

Financial protection for dependents, protection from creditors, tax benefits, vehicles for saving

Front 36

Final: What are the steps in the need analysis method of life insurance (3)

Back 36

Assess your family's economic needs, determine what financial resources will be available, determine additional amount required to protect your family

Front 37

Final: different types of insurance policies (4)

Back 37

Term life insurance (straight term, decreasing term), Whole life insurance, universal life insurance, variable life insurance

Front 38

Final: What are the objectives of investing (4)

Back 38

current income,
retirement,
major expenditures,
shelter from taxes

Front 39

Final: What are the different ways to invest (5)

Back 39

preferred stock, convertible bond, mutual bond, exchange traded funds, real estate

Front 40

Final: Define securities market

Back 40

arenas where financial instruments are traded

Front 41

Final: What are the two segments of securities market?

Back 41

Primary, secondary

Front 42

Final: Define a bull market

Back 42

rising securities prices for extended time period

Front 43

Final: Define a bear market

Back 43

falling securities prices for extended time period

Front 44

Final: Who is a stockbroker?

Back 44

buy and sell securities for customers

Front 45

Final: what are the different types of orders when buying or selling securities (3)

Back 45

market order
limit order
stop-loss order

Front 46

Final: What types of investment information are needed to become an informed investor (5)

Back 46

annual reports, financial press, industry data, stock quotes, advisory services