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12 Cards in this Set
- Front
- Back
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Mutual Fund
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Instrument which allows one to invest in a number of companies simultaneously |
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Inflation
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The rising cost of goods and services |
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Gross Domestic Product (GDP)
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Reports the amount of finished goods and services produced in the U.S. over the course of a year. Indicator of economic health. Higher GDP=Healthier Economy |
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Discount Rate
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Rate the federal reserve charges banks to borrow money. - Rates are raised to "cool off" the economy - Rates are decreased to stimulate the economy |
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Consumer Price Index
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Index of the price of 80,000 goods/services reflecting the current lifestyle of a typical urban consumer. -Rapid increase indicates inflation on the rise |
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Recession
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When a nation's GDP declines for 2 consecutive business quarters
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Dow Jones Industrial Average
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- Oldest/Most famous Index - Takes a weighted avg above the 30 largest stocks on the NYSE - |
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S&P 500
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- Takes a weighted average on the 500 most widely held stocks - Accounts for approx. 70% of the market |
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NASDAQ
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Over 3000 primarily tech stocks |
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Traditional IRA
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- Pay Taxes Later - Receive potential tax deductions now |
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Roth IRA
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- Offers tax-free growth potential, - No age restrictions - Earnings taxed/penalized if distributed before age 59.5 & before account is 5 years old - Never required to take withdrawals |
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Individual retirement Account (IRA)
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- Used for retirement saving - Account-holder must have earned income to make a contribution -This is a tax-deferred individual account |
