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44 Cards in this Set
- Front
- Back
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What is the purpose of a budget
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to monitor and control spending
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what is the difference between a Balance Sheet and an Income Statement?
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balance sheet tells what you ow and own
income statement is a record of expenses and income |
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What taxes are most commonly deducted from your paycheck?
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federal income tax
FICA (social security) state and local taxes |
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What is the difference between the 1040EZ and the 1040 tax forms
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you can deduct things with the regular 1040
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Identify three consumer proteciton provisions in the new CARD law
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cannot raise interest rates in the first year
no fees for online or phone no gift offers to students |
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List four possible fees you might incur when using a credit card?
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interest payments
transaction fees annual fees late payment fees |
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What is the difference between an affinity and a reward credit card?
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affinity - gives % of money to something you support
reward - you get a reward of some sort (frequent flier miles) |
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The economy goes through various stages over time. Identify the four cyclical stages
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expansion
recession depression recovery |
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What is the difference between gross pay and net pay
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gross - all income subject of federal taxes
net - how much you are paid after taxes are taken out |
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Know how to use tvm calc.
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...
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What is the deadline for filing taxes each year?
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April 15
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List three types of depository financial institutions
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bank
credit union savings and loan |
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For what deposit amount does the FDIC currently provide insurance?
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250,000
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Describe the difference between a cashiers check and a certified check
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cashiers - bank signs it - liable to pay it
certified - checks to see if you have sufficient funds etc. |
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Explain the difference between a fixed-rate mortgage and an adjustable -rate mortgage
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fixed- stable doesnt change for life of mortgage
adjustable - interest rate can change |
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What percentage of your income should serve as the limit for consumer debt>
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less than 20%
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What percentage of your income should serve as the limit for your rent or mortgage
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30%
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What is the difference between a credit card and debit card
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debit - takes right out of your bank
credit - borrowing and you pay back with interest - builds credit rating |
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You seek a 1500 loan from a Credit Union. What could be offered as collateral
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nice stuff
car |
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Indentify four typesof insurance policies owned by most American adults
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auto insurance
home insurance health insurance life insurance |
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What is the difference between whole life insurance and term life insurance
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whole - provides coverage for you entire life
term - provides for a certain amount of time |
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List three items in your home that would not usually be covered by property insurance
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car
antiques jewelry |
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Provide an example of an event that might be covered by your homeowners liability policy
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someone gets hurt on a trampoline
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Most homeowner's insurance policies assign an actual cash value to insured property How is this different than replacement cost value
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actual cash value - how much worth factoring in depreciation
replacement cost value - how much it costs to replace it |
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List three factors that would affect the cost of your home insurance premiums?
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location
type of house risks like a swimming pool |
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What is the difference between collision an comprehensive auto insurance coverage
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collision - coverage for a crash - your fault or not
comprehensive - coverage for non- crash related events |
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What are two key differences between HMO and PPO health insurance programs?
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HMO - have to stay in network of physicians
PPO - can go outside of the network |
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What is the purpose of COBRA
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insurance while in between jobs
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Identify the two largest secondary securities markets in the US
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NYSE
AMEX |
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How do a bull market and bear market differ?
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bull - prices going up (strong economy)
bear - prices falling |
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Who regulates the securities markets in the US
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SEC securities and exchange commission
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Identify three market data indexes used to monitor securities
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NYSE
NASDAQ S&P 500 |
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How does an individual acquire income from investment in stocks
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dividends
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What is the highest rating a US bond can be assigned?
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AAA
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What is the central difference between stocks and bonds?
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stocks - buying part of a company
bonds- loaning to a compayn (more secure - lower yielding) |
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Explain the mutual fund investment concept
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Bring together funds of many people for a diversified portfolio
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What is the difference between income stock and speculative stock
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income - stable stocks with history of income
speculative - more risky - you think they will earn a lot |
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What makes a "no load" mutual fund different from a "load" mutual fund?
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no load - little or no commission charged
load - commission charged |
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List three methods by which to invest in real estate>
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buy land
flip houses buy and rent out |
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What is the source of an individuals pension? S.S.
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pension - company
S.S. government - tax payers |
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At what age is an individual eligible for full SS retirement benefits?
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67
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What is the source of social security funds
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from payroll taxes
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What happens to your property if you die without a will
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intestacy laws go into effect
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Wat are estate taxes
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tax on transfer of an estate
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