Wise test Review all topics
better off financially the person is.
A person's debt ratio shows the relationship between debt and net worth. The lower the ratio the
Securities
A pharmacy is to drugs as the American Stock Exchange is to:
Beneficiary
A survivor who receives all or part of the money from a life insurance policy.
A: tax and penalty free.
After five years of owning a Roth Individual Retirement Account (IRA), a person wants to buy his first home, the person can withdraw money from the Roth IRA
Depreciation
Amount the car has decreased in value because of age and use.
Rider
An addition to a policy that covers specific items.
exempt from state and local taxes.
The interest earned on United States Series EE Savings Bonds is
Medicare
A health care plan that is supported by fed and state gvt. for people age 65 and older.
Medicaid
A health care plan that is supported by the fed and state gvt. for low income families.
Capital
"net worth". wealth in the form of money or property owned by a person
Credit Card
A card that allows the holder to purchase an item or service immediately but pay for it later.
Student Loan
A loan made to a _____for payment of tuition or cost of living expenses while in school.
Commercial Loan
A loan made to a business for the purpose of buying a business, making improvements to an existing one, or providing money for the business to use.
Mortgage Loan
A loan that is used to buy real estate property, usually a house.
budget variance
A man budgeted $200 a month for clothing. This month the man spent $150 on clothing therefore that budget item is considered to have
Exercise Tax
A person complains about how expensive it is to be a cigarette smoker. One of the reasons cigarettes are so expensive is that
Notify the credit card companies
A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take
Balance
The amount of money remaining in a bank account.
Cashiers check
a check bought from a bank with payment guaranteed by the bank
stock
a share of ownership and interest in the assets and earnings of a company
10 years
When a person declares bankruptcy that fact will appear on the person?s credit report
Monetary policy
Which of the following does the Federal Reserve use to regulate the nation's money supply?
Department store charge cards.
Which of the following is considered to be open-end credit?
Truth in Lending Act
Which of the following is the federal law that requires the cost of credit be disclosed
Bouncing a Check
Writing a check from an account for more money than is currently in the account, and the bank returns it to the place where it was cashed.
bond
a certificate of debt given by a company or government that entitles the bondholder to the original amount plus interest paid by a set date
CD
a certificate of deposit stating money has been deposited for a specific time
savings bond
a debt certificate issued by the U.S. Treasury that is not transferable
Interest
Fee for borrowing money.
Savings and loans
Financial services and products generally offered by banks and credit unions include:
reconciling a checking account
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the, The act of checking all transactions on your bank statement with your check registry to make sure everything adds up to the same amount.
50 dollars
In the event that your credit card is stolen in the United States, federal law limits the liability of card holders to ____ regardless of the amount charged on the card by the unauthorized user.
Dow
Index of 30 largest, most traded stocks public companies
Credit Limit
Maximum amount able charge at one time with a particular credit card.
Credit Union
Money deposited is usually loaned only to members. Membership usually consists of people in a given job, trade, industry or other related group,
The time value of money
Money received today is worth more than the same amount of money received sometime in the future is:
Federal Reserve System
New coins and currency make their way into the general economy, consumers and businesses, through the distribution system of the:
capital gains on the investment will be taxed at a lower rate.
One of the benefits of holding an investment for over a year rather than selling it in less than a year is that the
checking account
Paper checks or debit cards are used to withdraw money deposited into the account to pay for items
PIN
Personal Identification Number used with debit cards
Claim
Request for payment due to financial loss.
Certificate of Deposit
Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals
Coinsurance
Sharing of costs between a health insurance company and the policyholder.
Worker's compensation
State funded protection for employees injured on the job.
Salaries, wages, and tips
The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are:
the rate of inflation.
To determine the time value of depositing $100 in a savings account, a person needs to know the interest rate and
A personal loan without assets to cover the loan amount
What is meant by an uncollateralized loan?
a collateralized loan
When a person brings an item to a pawnshop to obtain cash, the transaction is considered
Money Order
a type of check used to pay bills or make payments for which the money is guarenteed
savings account
an account in a bank/financial institution for saving, making deposits/withdrawals
blank endorsement
anyone can cash the check after the check has been signed
EFT
electronic funds transfer; exchange of money by sending bank records via a computer network
Character
good reputation, Integrity
liquidity
how easily an asset can be converted into cash
volatility
how easily the interest or cash value of an investment can change
zero liability "Owes nothing"
if just the credit card account number itself is stolen, federal law guarantees that the card holder has a___________to the issuer.
restrictive endorsement
more secure than a blank endoresement because the receiver of the check identifies what is to be done to the check - deposit only
Collateral
security given for loan, assets to secure the debt
growth stock
stock from growing companies, more risk
blue chip stock
stock from large companies, less risk
common stock
stock in a public corporation; returns vary, but higher risk
penny stock
stock that costs less than $1 per share; extremely high risk
preferred stock
stock with fixed dividends, less risk
special endorsement
the check can be transferred to another person after the receiver signs the back and writes who is to get ownership of the check
budget variance
the difference between the budgeted amount and the actual amount that you spend
FDIC
the federal government protects your money up to $250,000 in a single account
risk
the possibility of earning or losing money from an investment
invest
to put money to work earning interest over time
dividend reinvestment
using dividends previously earned on the stock to buy more shares
Balance a Checkbook
when the amount of money in the checking account is the same as the bank's records.
Capacity
your ability to repay the debt. Do you have sufficient $money to repay a loan
Premium
Amount of money that the policyholder has to pay the insurance company for protection.
Uninsured
Covers bodily injuries to you when hit by a person not insured.
Auto Loan
A loan that is issued for the purpose of buying a car.
Currency Exchange or Check Cashing Stores
Cashes checks for a fee (generally a percentage of the check).
mutual fund
a group of investments held in common with shares owned by individual investors
ATM Card
a magnetic card used in an ____ machine to deposit or withdraw money.
money market
a savings account in which deposits are invested to yield additional earnings
Compounded interest
Interest earned on interest is known as:
checks
Legal documents that function like cash
Credit history
a summary of a person's borrowing and repayment history
Real property
Buildings and other structures.
Underinsured
Covers bodily injuries to you when hit by a person who does not have enough insurance.
Personal property
Appliances, furniture, clothing, and other belongings.
Property Damage
Covers cost of damage to the other people's property if you are at fault.
80 shares of the stock and the price of each share is $40.
An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the investor would own at the moment of the split
ATM
Automated Teller Machine that is electronically connected to an individual's bank account
Check Register
Book in which to record the amount of all checks written and to whom they were given.
a secure, low risk investment.
Buying a treasury bill (T-bill) is best for investors who are looking for
Homeowner's policy
Insurance that combines the major types of property insurance into one package.
Automatic Teller Machine
Machine, which allows a person to make a deposit or withdrawal from their account without having to go to the bank.
Credit
Money, which is loaned, most often for a fee, and must be paid back.
Deductible
The amount the policyholder must pay for expenses before the insurance company pays anything.
includes the premiums paid as well as the interest
The person decides to surrender the policy. At the time of surrender, the person will receive
Medical
Covers medical expenses for you.
Collision
Covers damages to the policyholder's car if they are at fault.
Bodily Injury
Covers medical, lost wages, etc. to people injured in the other car if you are at fault.
Commercial Bank
a financial institution that accepts demand deposits and makes loans and provides other services for the public
A long-term, fixed rate certificate of deposit
Lamar believes that interest rates are going to fall in the near future ,She should invest in:
Liability
Legal responsibility to pay if a person causes an accident or harm to someone.
