OG personal finance quizlet with EVERYTHING from the plato course

Truth in Lending Act (TILA)

protects consumers against inaccurate and unfair practices from credit card companies and lenders

FTC

protects consumers from financial loss caused by identity theft prevents unfair competition among businesses by enforcing antitrust laws

Gramm-Leach Bliley Act

protects the privacy of consumers' financial information, requires banks and other financial institutions to explain to consumers what information they share with other businesses

Consumer Product Safety Commission (CPSC)

protects the public from severe harm resulting from the use of certain products; products include those that pose a threat of fire, hazards to children, and chemical poisoning.

public relations (PR)

provide information for consumers, uses third parties such as news journalists or business press to convey positive information about a company or product

Financial institutions (FIs)

provide loans, accept deposits, and facilitate financial transaction

Fair Credit Reporting Act (FCRA)

provides framework of corrective action you can take to correct errors in your credit report

positive externality

public education in the United States results inbenefits for others around the world

bandwagon advertising

puts forth the effectiveness of your product by portraying that your product is popular among customers

investment institutions

raising money (investment capital) for governments and corporations by issuing securities such as stocks or bonds

disposable income

received after tax deductions from your pay, it is the amount of money left for you to spend and save, also known as the total net pay

Office of the Comptroller of the Currency (OCC)

regulates and supervises national and foreign banks operating branches in the United States; mission is to ensure that the banking system is stable, treats customers fairly, and provides fair access to financial services.

Food and Drug Administration (FDA)

regulates the quality and safety of food and drugs

depository institutions

accept and manage customer deposits in checking and savings accounts, make loans to individuals and businesses

credit unions

accept deposits and provide loans, are owned by the members who use their services

fiscal policy

adjust spending and tax levels, used by government

emotional appeal

appeal to the fears or desires of consumers

Right to Financial Privacy Act

gives consumers the right to have notice before their financial records are disclosed

Federal Trade Commission (FTC)

government agency that promotes consumer protection and prevents anticompetitive business practices by enforcing antitrust laws

Federal Trade Commission (FTC)

government agency that protects consumers and promotes competition by preventing unfair business practices, suing companies that violate the law, and collect consumer complaints against companies

Truth in Advertising

group of laws that protect consumers from misinformation from companies that advertise the products they sell; ban advertising claims that can harm health, make false claims, and defraud consumers

FDIC

guarantees consumer and business accounts up to$250,000 arranges for failed banks to be bought by stable banks

Fair Credit Billing Act (FCBA)

guides you on how to get the billing mistakes corrected on your credit card accounts, includes steps to tackle fraudulent charges included in your credit card accounts

financial service companies

offer higher-risk loans to consumers than banks or credit unions; give immediate access to cash for customers, including people who may have bad credit ratings; charge a higher interest rate compared to loans from banks and credit unions

contract components

offer, acceptance, consideration, legal purpose

envelope method

once you have listed all your expenses, create envelopes named after each of these expenses

Mint Global

online service that provides a database for registered users to research companies worldwide; includes company financial date, industry research, and business- and company-related news

free enterprise system

only market forces affect production and consumption decisions, little gov't interference

Credit Card Accountability, Responsibility and Disclosure Act (CARD Act)

oversees the extent of fees charged by credit card companies for delayed payment

Sherman Act

passed in 1890, preserve competition

Federal Trade Commission Act

passed in 1914, prevent unfair business practices

credit report

prepared by a credit bureau, collect and report consumer credit histories

capital gains

profits earned by selling assets, such as stock or real estate

Fair Debt Collection Practices Act (FDCPA)

prohibits debt collectors from making use of unfair means to recover overdue bills

commercial banks

Banks offer a wide variety of services for borrowers and lenders. They are the largest type of financial institution in the United States

consumer programs

exist for consumers, communities, and businesses; protect the rights of consumers; protect consumers from unsafe products, false advertising, and unfair/illegal business practices

company information sources

billboard sign for a new car model, television ad for a new car model

regulatory issues

combat money laundering and identity theft

Fair and Accurate Credit Transactions Act

combats identity theft and makes it easier for consumers to dispute inaccurate information on their credit reports

certificates of deposit (CDs)

consumer depositing the money receives a certificate from the bank guaranteeing payment at the maturity date (the date the CD is ready), maturity dates for CDs last from three to five years

brand loyalty

consumers regularly buy one particular brand instead of its competitors

sales promotion tools

coupons, discounts, product samples, giveaways, contests, price gurantees

external information sources

customers rating a new car model on social media, blog comparing a new car model to competitors

contractual institutions

deal with insurance policies and pension funds

unilateral contract

deems acceptance of a contract from the other party when that party performs the requested action

checking accounts

deposit accounts that allow account holders to make withdrawals and deposits; a person holding money in a checking account can convert it to cash quickly through the use of checks, debit cards, and ATM withdrawals

savings accounts

deposit accounts that safeguard the deposits and earn a small amount of interest; help consumers put aside money for future purchases, investments, or financial goals

Magnuson-Moss Warranty Act

directs manufacturers and sellers to detail the warranty coverage, terms, and exclusions on products

dividends

distributed profits that a company pays to its shareholders

long-term goals

duration of more than five years

direct marketing

effective technique for informing customers about a product or brand

401(k) retirement plan

employees contribute part of their income regularly to an account linked with the plan,

Identity Theft and Assumption Deterrence Act (ITADA)

ensures awareness about identity theft and ways to counter the threats of identity theft, guides consumers on registering complaints regarding this issue

stocks

equity or a claim on a company's assets

express contract

established when both the parties explicitly (orally or written) agree on the contract terms

real estate broker

help clients buy, sell, and rent properties; advise clients on home ownership, property benefits, market conditions, and so on

personal finance manager

help individuals and families manage and grow their money; advise clients on investing their money in stocks, bonds, and other types of securities;

FDA requires companies to

identify product prominently, provide net quantity, provide information panel, easy to read labels

FTC requires clothing companies to

include instructions for care of garment, accurate information in labels, provide care instructions, easy to read labels

A family can have more than one person contributing to the household _______ for a better financial position

income

passive income

income earned through rental activity or trade that requires minimal efforts; rental properties, intellectual property

interest

income generated by investing money in savings accounts or bonds

gross income

income received before tax deductions

negative externality

increased neighborhood crime is caused by a pawn shop

incentive

increased salary, promotions, bonus; something that motivates an individual to undertake or complete an activity

Federal Deposit Insurance Corporation (FDIC)

independent agency that maintains stability in the banking system

IRAs

individual retirement accounts, or IRAs, allow people to put money aside for the future

money market accounts

interest-bearing deposit accounts that earn a higher interest than savings accounts, require a minimum balance

bonds

loans to governments and companies

opportunity cost

lost benefits of other opportunities

Series 6 certificate

lowest-level certification required to sell mutual funds, trusts, and variable annuities

tax accountant

manage their clients' taxes

financial services sales agent

meet prospective clients to discuss their financial goals and recommend suitable financial services to meet those goals

finance management tools

mortgage calculator, amortization schedule, budgeting tools, and spending analyzer

insurance

most desired benefit offered by employers

Series 7 certificate

necessary to sell bonds and stocks

promotional advertising

new variants of your existing products using promotional advertising, offer discounts or show improvement in the quality of your product to attract more customers

Better Business Bureau (BBB)

non-profit organization that provides free business reviews of companies, assigns different companies with grades from A (Excellent) to F (Terrible)

401(k) Retirement Savings Account

retirement accounts are tax-advantaged retirement savings accounts, no withdrawing money from your retirement savings account until you actually retire

consumer rights

rights to safety, right to choose, right to information, right to be heard

529 account

savings account for college

Series 3 certificate

sell commodities

insurance sales agent

sell different types of insurance to customers; meet with customers to determine their risk profile and recommend different types of insurance to mitigate risk of loss

personal selling

sell product or service with face-to-face interactions with potential customers

recession

slowdown in economic activity (production and consumption)

Fair Credit Reporting Act

specifies the purpose of a credit report and how it may be used, and the consumer's rights to review and dispute the information provided by businesses that affected their credit report

Financial choices revolve around three primary decisions

spending, saving, and sharing

Series 63

state license that you require in addition to the other series certificates

Patriot Act

strengthened the measures of the US government to prevent, detect, and prosecute international money laundering

inflation

sustained increase in price of goods and services

implied contract

the agreement on the terms of contract is implied through the conduct of the participants in the contract

mid-term goals

time frame of one to five years

short-term goals

time frame of up to one year

stock brokerage firms

trade (buy and sell) financial securities between a buyer and a seller

social trends

trends that relate to cultural values and norms within a society

bilateral contract

two or more parties enter into a contract by promising to fulfill the requested action

savings and loan associations

use money from savings accounts to provide home loans to customers

debit cards

used for purchases that will be taken directly out of the checking account

credit cards

used to make purchases on debt, meaning the consumer agrees to pay for it later with interest

internet ads

website ads, pop-up ads, click-thru website ads