Study

Econ Finance Literacy

  •   0%
  •  0     0     0

      Back   Restart
  • What does it mean to default on your loan?
    Failure to make pay it back
  • According to the book, when renting an apartment, your monthly rent should not be more than_____
    two weeks of your monthly income
    four weeks of your monthly income
    three weeks of your monthly income
    one week of your monthly income
  • Money Market Accounts, Mutual Funds, and CD's are good ways to __________ money
    Withdraw
    Budget
    Save
    Borrow
  • 1 Advantage 1 Disadvantage of Sole Proprietorships
    complete control, unlimited liability,
  • Which is the best synonym for the bonds that are used to raise corporate capital
    Loans
    Payments
    Taxes
    Stocks
  • A sole proprietorship is an unincorporated business with two or more partners that split duties evenly
    False
    True
  • Explain Deductible vs Premium when discussing insurance
    Dedutible is what needs to be paid before insurance pays out, premium is your ongoing monthly payments to insurance
  • What is consider a good Credit Score? And why do you want a high score?
    700-720+...Better terms on loans
  • Is your money protected while in a bank? If so, how?
    FDIC - Insures your account up to $250k
  • Explain the difference between a debit card and credit card
    Debt card is money you have in the bank, credit is money borrowed
  • What is the best title for a list that includes: Direct Subsidized, Direct Plus, Direct Consolidation
    Work Study Programs
    Fafsa requirements
    Federal Student Loans
    Financial Aid
  • Explain one advantage of having credit cards
    Convenience, purchase protection, rewards, building credit history, emergency purchases
  • Payment made for use of borrowed money is called?
    Collateral
    Budget
    Fees
    Interest
  • What is the difference between NET INCOME and GROSS INCOME
    Net income is how much you bring home after deductions (taxes/insurance/investments), Gross is amount earned before deducations
  • A mutual fund a company that sells shares of a portfolio of securities (stocks/bonds)
    True
    False
  • Who pays interest on a loan?
    Borrower
  • Why is important to live on a budget or have a budget?
    It will help prevent over spending, make life easier by making smart financial choices
  • Extra points - Explain difference between Traditional IRA and Roth IRS
    Traditionals are invest prior to being taxed and all gains taxed when money is pulled. Roth is taken out of net income. No taxes on gains
  • EXTRA POINTS - Why do you want your portfolio to be diversified?
    Less risk in case of market failure. Investments are spread out.
  • ______________ is something of balue that can be claimed by a lender if a loan is not repaid
    Collateral
  • A(n) ____________ is a group that channels savings to investors
    Credit Bureau
    Financial Instituion
    Certificate of Deposit
    Investors
  • People w/ bachelors degrees have lower earning power than works with a HS diploma only
    True
    False
  • With insurance, a higher deductible means a higher premium (monthly payment)
    False
    True
  • Why do stocks have the largest amount of risk? How can you minimize your risk?
    their price can fluctuate significantly based on a company's performance/ Diversify
  • When paying your credit card bill, you should pay only minimum payment
    False
    True
  • Another way to think of the term "Capital" is ___________.
    Money/Assets
  • A corporation has all the rights and responsibilities of
    a government agency
    a family
    an individual
    a partnership
  • Another name for a passbook account is savings
    False
    True
  • BONUS POINTS - Explain the concept of Compound Interest
    You earn interest on your interest over time leading to greater gains
  • Donations to charities are tax deductible?
    False
    True
  • Why are traditional savings accounts not a great way to invest your money?
    Lowest returns/low interest rates
  • How much money should you save before you start renting an apartment?
    no savings necessary
    2 months rent
    1 months rent
    3 months rent
  • Who issues Municipal Bonds?
    State and Local Governments
    Congress
    Financial Institutions
    Coporations
  • A person who owns a share of shares of stock in a corporation is a stockholder?
    False
    True
  • Each student who wants Financial Aid must do what?
    Complete an Application for a Social Security Card.
    Complete the FAFSA Application
    Take AP Classes
    Join the Military
  • Explain when one wants a high interest rate and when the same person would want a low interest rate
    High Interest rate when investing, low interest rate when borrowing
  • Which is not a type of business organization?
    Coporation
    Partnership
    Sole Proprietorship
    Stockholder
  • What is one benefit and one negative about credit unions?
    Negative - membership is required, less locations Positive - Better rates, more options
  • Person or institutions to whom money is OWED
    Leasee
    Investor
    Creditor
    Borrower
  • What has the greatest impact on your credit score?
    On time payments
    Number of Accounts
    How Much Available Credit you Have
    Age of Credit
  • What is the term for monthly, quarterly, semi annual price paid to an insurance company?
    Collateral
    Income Tax
    Interest Rate
    Premium
  • Explain the difference between a secured loan and unsecured loan
    Secured loans require some sort of collateral, such as a car, a home, or another valuable asset,
    • Your experience on this site will be improved by allowing cookies.