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15 Cards in this Set
- Front
- Back
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Puffery |
Relative innocent exaggerations used to sell products |
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Pyramid Scheme |
An illegal scheme of selling goods. Participants are recruited by advertisements offering big profits to those who pay a fee for agency rights, that is, rights to sell goods as a representative of the pyramid company |
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Rate of the return |
How fast money in savings account or investment grows. Annual earnings on an investment expressed as a percentage of the amount invest, also known as a yield |
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Reconcile |
The process of comparing personal bank account records to the banks records of the account balance in order to uncover any possible discrepancies |
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Renting |
Paying a periodic fee for the use of property |
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Rent-to-own |
A plan to buy a product with little or no down payment by renting it until the final payment is made, at which point the total paid far exceeds the products purchase price |
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Repossession |
Confiscation of collateral, often without notice, if a borrower defaults on a loan |
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Retirement |
The point where a person stops employment completely, usually when reaching a specific age or when physical conditions prevent the person from working any longer. Retirement may also be a personal choice with an adequate amount of financial planning |
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Retirement accounts |
Accounts such as IRAs, annuities and 401Ks that allow individuals to save money toward retirement on a tax-deferred basis |
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Return on investment |
The measure of profitability of an investment |
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Reverse mortgage |
An arrangement in which a homeowner borrows against the equity in his/her home and receive regular monthly tax-free payments from the lender. This is also called reverse-annuity mortgage or home equity conversion mortgage |
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Risk |
A measure of the likelihood of loss or profit; the uncertainty of an investments rate of return. Possible losses involving income or standard of living. The possibility of a loss from perils to people or property covered by insurance |
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Risk management |
The process of calculating risk and devising methods to minimize or manage loss, for ex. By buying insurance or diversifying investments |
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Risk tolerance |
The amount of uncertainty or possibility of loss the individual can bear |
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Rule of 72 |
How long it takes money to double in value. A rough calculation of the time or interest rate needed to double the value of an investment. Divide 72 by the interest rate to determine the number of yeats it will take money to double. Calculating interest on both principal and previously earned interest. |
