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45 Cards in this Set

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An announcement-usually paid-of a product's or service's benefits that is intended to encourage its purchase.
advertising
An item with economic value that an individual or organization owns, such as stocks, real estate, personal property, and business equipment.
asset
The percentage cost of credit on an annual basis, which must be disclosed by law.
annual percentage rate
(APR)
The annual rate of return on an investment, which must be disclosed by law and which varies by the frequency of compounding.
annual percentage yield
(APY)
A computer terminal used to conduct business with a financial institution or purchase items such as postage stamps or transportation tickets; also known as a cash machine
(ATM)
A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets. A court's determination of personal bankruptcy remains in a consumer's credit for 10 years.
bankruptcy
A revison of bankruptcy law to make the system fairer for creditors and debtors and make affordable credit available to more people.
Bankruptcy Abuse Prevention
and Consumer Protection Act
A state or federally chartered for-profit financial institution that offers commercial and consummer loans and other financial services
bank
A person or organization named to receive assets after an individual's death.
beneficiary
A certificate representing the purchaser's agreement to lend a business or government money to the promise that the debt will be paid-with interest-at a specific time.
bond
1. A spending plan.
2. A record of projected and actual income and expenses over a period.
budget
A description of a company's organizational structure, staff, activities, and marketing and financial plans, including expected sources of income and expenses.
business plan
Income that results when the selling price of an asset is greater than the original purchase price.
capital gain
Monetary loss that occurs when the selling price of an asset is less than the original amount invested.
capital loss
A profession or field of employment for which one studies or trains, such as financial sevices or medicine.
career
A state or federally chartered for-profit financial institution that offers commerical and consumer loans and other financial services.
bank
A summary of receipts and payments for a given period, helpful when preparing a budget: also known as an income and expense statement.
cash flow statement
Aid to those in need.
charitable gift
A specific-purpose loan requiring repayments with interest and any other finance charges by specific date. Examples include most mortgages or auto loans.
closed-end-credit
Property that a borrower promises to give up to a lender in case of default.
collateral
Physical objects-such as fine art, stamps, and antiques - that an investor buys in hope that they will grow in value.
collectibles
A business that specializes in obtaining payments from debtors who have defaulted on their loans.
collection agency
The process of seeking information about products and services to find the best quality or utility at the best price.
comparison shopping
Payment and benefits for work performed; also payment to injured or unemployed workers or their dependents.
compensation
An expression of dissatisfaction with a product or service, often in the form of a letter to the seller or manufacture documenting the problem and stating the desired solution.
complaint
Calculating interest on both principal and previously earned interest.
compounding
A legally binding agreement between two or more parties.
contract
An agreement to provide goods, services,or money in exchange for future payments with interest by a specific date or according to a specific schedule. The use of someone else's money for a fee.
credit
A plastic card that authorizes the delivery of goods and services exchanged for future payment with interest, according to a specific schedule.
credit card
An organization that provides debt and money management advice and assistance to people with debt problems.
credit counseling service
An official record of a borrower's credit history, including such information as the amount and type of credit used, outstanding balances, and any delinquencies, bankruptcies, or tax liens.
credit report
A statistical measure of a loan applicant's creditworthiness, which is the likelihood of repayment.
credit score
A state or federally charter not-for-profit financial cooperative that provides financial services to its member-owners, who have met specific employment, residence, or other eligibility requirements.
credit union
The presumption that a specific borrower has sufficient assets, income, and/or inclination to repay a loan.
creditworthy
A method of selecting a course of action after gathering and evaluating information and considering the costs and benefits of various alternatives and consequences.
decision making, systematic
A plastic card that provides access to electronic funds transfer (EFT) from an automated teller machine (ATM) or a point-of-sale (POS) terminal.
debit card
Something owed, usually measured in dollars.
debt
The dollar amount or percentage of a loss that is not insured, as specified in an insurance policy.
deductible
The failure to meet a financial obligation or agreement.
default
A person who relies on another individual for support.
dependent
Gross pay minus deductions for taxes.
disposable income
A strategy for reducing some types of risk by selecting a wide variety of investments.
diversification
Earnings from corporate stock or credit union share accounts.
dividends
A method of investing a fixed amount in the same type of investment at regular intervals, regardless of price.
dollar-cost averaging
Earnings from employment, including commissions and tips.
earned income