Consumers Education Final Review

W-4

A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes.

Cover letter

A letter you send with your resume to provide more information about you.

Monopoly

A market in which there are many buyers but only one seller.

Fixed-Rate Mortgage

A mortgage in which the interest rate does not change during the entire term of the loan.

Payee

A person to whom a check is written

Individual Retirement Account

A qualified retirement plan that provides most individuals with a deferred federal income tax benefit.

Endorsement

A signature or stamp on the back of a check transferring ownership

security deposit

A sum of money usually equal to one month's rent, held by the landlord to cover any damage to the apartment caused by a tenant.

What form would you fill out to file your taxes?

Form 1040

By January 31 each year every U.S. employer must provide each of its employees with a summary of his or her earnings and withholdings. Employees then use and enclose a copy of this form with their tax forms in reporting their individual taxes. This form is known as a _________ form.

Form W-2

Term Life Insurance

Insurance that provides financial protection from losses resulting from a death during a definite period, or term.

The ticker symbol "AAPL" trades on the:

NASDAQ

Principle

The method of formation, operation, or procedure exhibited in a given instance.

Dividend

The portion of corporate profits paid out to stockholders

Mortgage

a specific type of loan that is used to buy real estate

Resume

a summary of your academic and work history

401K Plan

a tax-deferred investment and savings plan that acts as a personal pension fund for employees

annual percentage yield

amount of interest that a $100 deposit would earn, after compounding, for one year

Invoice price

amount the dealer paid to buy the car from the manufacturer

Escrow account

an account where money is held in trust until it can be delivered to a designated party

An expert's determination of the value of a piece of property is known as a (n)

appraisal

An increase in the value of a piece of real estate is

appreciation

401(k) Plans

are set up by your employer for your retirement

The type of arbitration in which you must follow what the arbitrator decides is _____________ arbitration.

binding

option

choice, or something that is available as a choice

An economy in which the government tells you what to produce is a description of a

command

Advertising that tries to win your favor by comparing its product's qualities to those of a competing product is called _________________ advertising.

comparative

A measure of your credit worthiness is your

credit rating

The amount you pay for a loss before the insurance company pays anything is known as a(n)

deductible

A deep, extended decline in a nation's economy is a(n)

depression

Mitch's father, Dan, has worked for Electronic Toys for almost ten years. However, due to a decrease in demand for the toys produced by the company, Electronic Toys will have to decrease the size of its staff by terminating Dan and 50 other employees. This practice is known as

downsizing

A building that has 2 apartments under one roof is a

duplex

Which of the following would be considered a life-span goal

earning a college degree

The equilibrium price for a product is the price at which the quantity supplied is

exactly equal to the quantity demanded

Monique will be traveling to Mexico next week and wants to trade U.S. dollars for Mexican pesos. What is used to determine the number of pesos she can obtain for her U.S. dollars?

exchange rate

The price of one currency in terms of another currency is the

exchange rate

ETF stands for

exchange traded fund

points

extra charges that must be paid by the buyer to the lender in order to get a lower interest rate

Three years ago, Herschell purchased leather furniture for his den at a cost of $4,000. An electrical fire in his den destroyed the furniture. In order to buy furniture similar to the pieces destroyed at today's prices, what type of insurance coverage should Herschell have?

replacement value

Examples of car dealer add-ons are

rust roofing paint sealers stain-resistant upholstery

Money paid by a renter that a landlord holds to cover the cost of damages to the rented property is a

security deposit

A unit of ownership in a corporation is a

share of stock

Something one hopes to achieve within the next year is a _____________ goal.

short term

Reference

someone who knows you well and is willing to speak to employers about your qualifications

Insurable interest

something of value that, if lost, would cause you financial harm

The quantities of a product that producers are willing and able to make available for sale at various prices over a given time period is said to be

supply

A set of forms that a taxpayer uses to calculate their tax obligation is a

tax return

Life span

the maximum length of life of a species; for humans, the longest that a human has lived

landlord

the person who owns the property that you rent

Market Value

the price at which property would sell

Gross Income

the total amount of income from wages before any payroll deductions

maintenance schedule

timetable for checking systems and replacing parts on a car

A company's written promise that the product will meet specific standards over a given time period is the product's

written warranty

Fraud

wrongful or criminal deception intended to result in financial or personal gain

a regular payment required to purchase insurance

premium

Anthony was involved in an accident last week that was his fault. What part of Anthony's automobile insurance coverage pays for the damage he caused to another vehicle?

property damage liability insurance

Insurance that pays only for damage you cause to another vehicle is called

property damage liability insurance

Comprehensive coverage

protection against damages to your car from causes other than collision or rolling over

If you deposit $200 in an account that pays 6% simple interest per year, ____________ would be the balance in your savings account at the end of the first year.

212

Which of the following is a tax-deferred retirement savings plan offered to employees by their employer?

401(k) plan

If you have: $500 deductible for comprehensive $1,000 deductible for collision There was a hail storm that damaged your car. It will cost $5,000 to fix it. What will the insurance company cover?

4500

deductible

Amount you must pay before you begin receiving any benefits from your insurance company

Command economy

An economic system in which the government controls a country's economy.

Mixed economy

An economy in which private enterprise exists in combination with a considerable amount of government regulation and promotion.

What day are your taxes to be filed unless you have filed for an extension?

April 15th

The profit you earn from selling stock at a higher price than you paid is called a

Capital gain

Annual Percentage Rate

Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan.

Which of the following was created to enforce laws that protect our environment?

Environmental Protection Agency (EPA)

The legal contract Abe signs that spells out the specific loss coverage and financial compensation associated with his insurance is known as his

Policy

Diversification

Spreading out investments to reduce risk

Form 1099

Summarizes income for independent contractors, interest income, or dividends earned. Money you make on investments.

Lemon

a car with substantial defects that the manufacturer has been unable to fix after repeated attempts

Replacement value

a claim settlement method in which the insured receives the full cost of repairing or replacing a damaged or lost item

Pre-existing condition

a medical condition diagnosed or treated before you join a new insurance plan

Graduated-payment mortgage

a mortgage that starts with unusually low payments that rise over several years to a fixed payment

Adjustible rate mortgage

a mortgage where the interest rate can change over time

down payment

a portion of the total cost of an item that must be paid at the time of purchase

Roy and Larissa examine the different types of mortgages available to them. They want to finance their home mortgage for 30 years and prefer having the same payment amount every month so they can plan their long-term budget. What type of mortgage would be best for Roy and Larissa?

fixed rate mortgage

Deliberate deception, designed to secure unfair or unlawful gain, is

fraud

An apartment that is available with furniture is considered

furnished

Medications that have the same composition as their name brad counterparts, but are less expensive, are known as

generic

The amount you earn before taxes are withheld is your ___________ income.

gross

One day while shopping with some friends, without thinking you decide to buy a new computer game with money you had intended to use for a new pair of shoes. This purchase is an example of a(n)

impulse purchase

A general increase in prices that reduces the purchasing power of money is known as

inflation

shared risk

insurance principle of using premiums from many policyholders to reimburse the losses of a few, so that no one suffers a financially devastating loss

The amount the dealer paid to buy the car from the manufacturer is the

invoice price

Six months ago, Regina purchased a new vehicle from a local car dealership. After just two weeks, she had the car towed to the dealership because of electrical problems. In addition, the cooling system malfunctioned; a computer problem kept her car in the dealer's repair shop for another 35 days. Even now the car does not operate properly. Because all of the problems occurred during the car's warranty period, Regina's car is defined as

lemon

Permanent Life insurance

life insurance that provides a death benefit plus a savings plan and lasts for the policyholder's lifetime

An item priced below cost to attract the consumer to the store is called a

loss leader

A timetable for checking systems and replacing parts on a new car is the

maintenance schedule

Sticker Price

manufacturer's suggested retail price listed on a sticker in a new car's window

China is the largest ______________ economy in the world

manufacturing

Property that is insured for the amount that it is currently worth is insured for its

market value

A loan to buy real estate, such as land or a house, is calls a(n)

mortgage

A car's mileage is indicated on its

odometer

Stockholders

owners of a corporation

Employers must withhold ________________ taxes from your paycheck.

payroll

Each time Guy gets a ticket or causes an accident, his state Bureau of Motor Vehicles is notified. This information becomes a part of Guy's driving record; his insurance company can then look at his driving record to determine whether to increase or decrease his premium. With each instance that is reported, what is added to his official record that could increase his car insurance premium?

points

An insurance contract is a(n)

policy

An insurance contract is an

policy