Semester Test Review
Download
Report
Transcript Semester Test Review
Personal Finance
What
is an overdraft?
NSF check
What
is a certificate of
deposit?
Way of saving money, there
are restrictions on when
you can withdraw your
money.
State
the guidelines for
choosing a PIN number.
A number that nobody else
could figure out.
What
is a round lot?
Stocks are traded in
multiples of 100.
Explain
the difference between
a debit card and a credit card.
Debit card=way to access
money in your checking
account
Credit card=loan
The
most expensive method of
using a credit card.
Cash advance or convenience
check
What
does PIN stand for?
Personal identification number
What
types of public records
appear on a person’s credit
report?
Divorce
Bankruptcy
Liens
Lawsuits
Why
is the interest rate usually
higher on credit cards than on
other types of loans?
Credit cards have a high rate
of default & are risky for
lenders
What
is inflation?
The increase in the cost of
living.
Which
stock pays dividends
first, preferred or common?
Preferred
What
is selling short?
Selling stock borrowed
from a broker that must
later be repaid.
A
term for the owners of a
corporation.
Shareholders or
stockholders
List
the highest bond
rating.
AAA
A
term for a bond in
default.
Junk bond
When
a bond is purchased
for less than its face value.
Discount
Which
type of bonds are
associated with the highest
interest rate? Why?
Corporate, risk
A
risk where you could
experience losses in your
income or standard of
living.
Personal risk
Why
do corporations sell
bonds?
To raise capital
A
risk where there is a
chance of a loss as well as a
chance of a gain.
Speculative risk
The
policyholder should be
put back into the same
condition as they were prior
to the loss.
Indemnification
What
is buying on margin?
Using leverage
When
a bond is purchased
for more than its face value.
premium
A
term for a person who
will inherit money from
another.
Heir or beneficiary
A
loan to purchase real
estate.
Mortgage
Added
to an insurance
policy to protect high value
items.
Personal property floater
Why
is it usually less
expensive to take part in a
group health insurance plan
that purchase an individual
plan?
The risk is spread among
more people.
Another
term for real
estate.
Real property
This
type of tax takes a
higher percentage of your
income as your income
increases.
Progressive tax
When
a bond is purchased
at a premium, the yield will
be ________ than the
coupon rate.
Lower
A
tax where the more you
earn the less you pay.
Regressive
Establishing
a monetary
fund to cover the cost of
a loss.
Self-insurance
A
crime where a taxpayer
does not pay their taxes.
Tax evasion
A
form that lists a
taxpayers total income and
taxes deducted from their
paycheck for a given year.
W-2
When
a person dies without
a will.
Intestate
The
person chosen to
administer a person’s will.
Executor
Who
pays a gift tax?
The giver
Gambling
is this type of
risk.
Speculative
When
should a taxpayer
itemize?
When their expenses are
larger than the standard
deduction.
A
financial product where a
the bank buys your house
from you.
Reverse mortgage
Another
term for a flat tax.
Proportional
The
date your income tax
return must be filed by.
April 15
Who
pays realtor’s
commissions?
The seller, not the buyer.
When
real property is
transferred from the seller
to the buyer.
Closing date
The
highest price a home
will bring on the market.
Market value
What
is a canceled check?
One that has been cashed.
An
endorsement where the
signature of the payee is
written exactly as his or her
name appears on the front of
the check.
Blank endorsement
A
term for balancing your
checkbook.
Reconciling
A
type of credit card that
can only be used at a
specific retailer.
Retail credit card
What
does APR stand for?
Annual percentage rate
List
one of the 3 major
credit bureaus.
Experian
Trans Union
Equifax
Amount
of time allowed to the
cardholder between the day
the items are charged on the
credit card and the day finance
charges are applied.
Grace period
When
can a person view
their credit report for free?
Once per year
When denied credit due to
something on their credit
report
What
does the FDIC do?
Provides insurance for
depositors at commercial
banks
Income
received by
stockholders.
Dividends
The
over the counter
stock market.
NASDAQ
The
largest stock exchange.
NYSE
An
increase in the number
of shares outstanding of a
corporation’s stock.
Stock split
When
an investor makes
money on the sale of stock.
Capital gain
Elected
by stockholders to
guide a corporation.
Board of directors
These
stocks do well when
the economy is growing but
usually do poorly in times
of recession.
Cyclical stocks
Another
term for face
value.
Par value
Bonds
rating.
Junk
with low or no
Bond
backed only by the
general credit standing of
a corporation.
Debenture
The
cost of insurance.
Premium
The
Risk
possibility of a loss.
One
who calculates an
insurance premium.
Actuary
To
take measures to lessen
the frequency oR severity of
losses that may occur.
Reduce the risk
When
an investor loses
money on the sale of stock.
Capital loss
What
is an attractive
nuisance?
Example: trampoline or
swimming pool
People
who determine the
value of property destroyed
for insurance companies.
Claims adjustors
These
people look for
evidence of destroyed or
damaged property.
Insurance investigators
Another
term for selfinsurance.
Risk assumption
Insurance
that protects
against loss from death.
Life insurance.
Being
paid twice the death
benefit for an accidental
death.
Double indemnity
A
front-end load.
Paid when you buy the
mutual fund.
Agreements
to buy
commodities at specified
prices on specified dates.
Futures contracts.
Example
of a progressive
tax.
Federal income tax.
Items
such as coins and
antiques are investments
known as_______.
Collectibles
An
example of a
regressive tax.
Sales tax
As
taxable income
increases, tax rates ____.
Increases
The
difference between
market value of property
and what you owe on it.
Equity
Another
term for closing
costs.
Settlement costs
An
example of a definedbenefits plan.
pension
A
legal document
authorizing someone to
act on your behalf to
handle personal affairs.
Power of attorney
An
IRA that taxes
contributions, but not
money withdrawn at
retirement.
Roth IRA
An
apartment with one
large room that serves as
the kitchen, living room,
bedroom, plus a bathroom.
Efficiency apartment
What
does MLS stand for?
Multiple Listing Service
A
legal document that
establishes ownership.
Title
The
portion of the purchase
price that the buyer
deposits as evidence of
good faith.
Earnest money
A
formal document that
expresses interest in
entering into a contract
with someone is a(n)
_______.
Offer