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