EPF Final Exam Review
Debit Card
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
Emergency Fund
A banking account that you can access quickly to pay for unexpected expenses or emergencies
Zero-Based Budget
A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero
Warranty
A company's or a store's written agreement to repair a product or refund your money if the product doesn't function properly
Lease
A contract granting use or occupation of property during a specified time for a specified payment
Mortgage Fraud
A crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have not been obtained had the lender or borrower known the truth.
Identity Theft
A crime that involves someone pretending to be another person in order to steal money or obtain benefits
401K
A defined contribution plan that automatically takes out money from an employee's paycheck before income taxes and invests it in mutual funds for purposes of retirement savings
Cryptocurrencies
A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
FDA (Food and Drug Administration)
A division of USDHHS responsible for regulating food and drug products sold to the public
Living Will
A document that indicates what medical intervention an individual wants if he or she becomes incapable of expressing those wishes.
Medicaid
A federal and state assistance program that pays for health care services for people who cannot afford them.
Social Security
A federal insurance program that provides benefits to retired people and those who are unemployed or disabled.
Fair Credit Reporting Act
A federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used.
Medicare
A federal program of health insurance for persons 65 years of age and older
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.
Grant
A financial award given by a government agency to a private individual or group in order to carry out a specific task
Salary
A fixed amount of money paid to an employee for each pay period.
Co-Pay
A fixed fee that an individual pays for specific medical services, like a visit to the doctor's office.
Commerical Bank
A for-profit institution that offers a full range of financial services, including checking, savings, and lending
Scholarship
A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements
European Union (EU)
A free trade zone encompassing 27 European countries
Ponzi Scheme
A investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors
Gig Economy
A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.
Last Will and Testament
A legal document that gives explicit directions on how to divide a person's financial assets once he or she dies.
Monopoly
A market in which there are many buyers but only one seller.
Oligopoly
A market structure in which a few large firms dominate a market
Adjustable Rate Mortgage (ARM)
A mortgage with an interest rate that increases or decreases during the life of the loan
Fixed Rate Mortgage (FRM)
A mortgage with an interest rate that remains the same over the life of the mortgage regardless of market conditions.
Credit Union
A nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
BBB (Better Business Bureau)
A nonprofit, business-sponsored agency with local offices dedicated to educating consumers, helping to resolve disputes, and promoting honest business practices
Apprentice
A person who is learning a trade from a skilled employer, having agreed to work for a fixed period at low wages.
Consumer
A person who purchases goods and services for personal use
Budget
A plan for making and spending money
Insurance
A practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.
Credit Bureau
A private firm that maintains consumer credit data files and provides credit information to authorized users for a fee
Business Cycle
Alternating periods of economic expansion and economic recession
Net Pay
Amount of income left after taxes and deductions have been taken out.
Gross Pay
Amount of salary or wages earned for a certain period of time before deductions are withheld.
Deductible
Amount you must pay before you begin receiving any benefits from your insurance company
Premium
Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance
Savings Account
An account at a depository institution that is designed to hold money not spent on current consumption
Checking Account
An account that allows quick access to funds for transactions
Endorsement
An act of giving one's public approval or support to someone or something
Incentives
An action or reward that motivates one to act a certain way
USDA (US Department of Agriculture)
An agency that monitors the safety and quality of poultry, eggs, and meat products
Tax Return
An annual report to the IRS summarizing total income, deductions, and the taxes withheld by employers
Phishing
An attack that sends an email or displays a Web announcement to numerous people that falsely claims to be from a legitimate enterprise in an attempt to trick the user into surrendering private information
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.
Traditional Economy
An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.
Variable Expense
An expense that changes from period to period, such as food or gasoline costs.
Pyramid Scheme
An illicit business model where profits are based on the investor's ability to recruit other individuals who are enrolled to make payments to their recruiters. Generally, neither a product or service is delivered.
Home Equity
The value of ownership built up in a home or property that represents the current market value of the house less any remaining mortgage payments. This value is built up over time as the property owner pays off the mortgage and the market value of the property appreciates.
Payday Lenders
Companies that make small short-term, high-interest loans to tide a person over "until payday"
Market Equilibrium
Condition of price stability where the quantity demanded equals the quantity supplied
Opportunity Cost
Cost of the next best alternative use of money, time, or resources when one choice is made rather than another
Market Economy
Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets
Trendsetting
Establishing or influencing a new trend or fashion.
Flattery
Excessive or insincere praise
Fixed Expense
Expenses which stay basically the same from month to month, such as housing and transportation.
Overdraft Fees
Fees incurred when a customer withdraws more money from an account than what is available in the account.
FAFSA
Free Application for Federal Student Aid; determines how much financial aid a student may receive.
GED
General equivalency diploma; certificate considered equivalent to a high school diploma, earned by passing a test
Complementary Goods
Goods that are commonly used with other goods
Substitutes
Goods used in place of one another
Tax Fraud
Occurs when an individual or business entity willfully and intentionally falsifies information on a tax return in order to limit the amount of tax liability.
Beneficiary
One who benefits from something; a person who is left money or other property in a will or the like
Cost of Living Adjustment (COLA)
Pay adjustment given to eligible employees regardless of performance or organizational profitability; usually linked to inflation.
Interest Rate
Percentage paid to a lender for the use of borrowed money (in debt); percentage earned on invested principal (in investing)
FTC (Federal Trade Commission)
Prevents the unfair, false, or deceptive advertising of consumer products and services
Roth IRA
Private retirement plan that taxes income before it is saved, but which does not tax interest on that income when funds are used upon retirement
Debt Collection
Process of aggressively pursing payments of debts owed by individuals or businesses
Fair Debt Collection Practices Act
Prohibits unfair, abusive, and deception methods of collecting debt
CPSC (Consumer Product Safety Commission)
Protects consumers against the making and sale of dangerous toys, games, appliances, etc.
Patriotic Advertisements
These ads show how one can support their country while they use their product or service.
Gramm-Leach-Bliley Act of 1999
Requires financial institutions - companies that offer consumers financial products or services like loans, financial or investment advice, or insurance - to explain their information-sharing practices to their customers and to safeguard sensitive data.
403b
Retirement plan found in nonprofit organizations, such as churches, hospitals, and schools.
Elder Fraud
Taking advantage of older people and unfairly benefiting from their monetary resources.
Trade-Off
The act of giving up one benefit in order to gain another, greater benefit
Bandwagon Appeal
The argument that since something is popular or everybody is doing it, so should you.
Cost of Living
The average cost of basic necessities, such as housing and food
Expenses
The costs of operating a business
Escrow
The depositing of money, legal documents, and instructions with a third party to be held until the conditions of a contract are fulfilled
Balance of Trade
The difference between a country's total exports and total imports
Productivity
The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.
Product Recall
The removal from the marketplace of a product that is defective or hazardous to consumers.
Macroeconomics
The study of economy-wide phenomena, including inflation, unemployment, and economic growth
Microeconomics
The study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices.
Economics
The study of how people seek to satisfy their needs and wants by making choices
Product Placement
A public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events
Credit Score
A rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower.
Pension
A regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed during their working life.
Credit Report
A report on a person's creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and savings balances
Deceptive Advertising
A representation, omission, act, or practice in an advertisement that is likely to mislead consumers acting reasonably under the circumstances
Product Review
A review of a product by someone with relevant and specialized knowledge.
Influencer Marketing
A series of personalized marketing techniques directed at individuals or groups who have the credibility and capability to drive positive word of mouth in a broader and salient segment of the population
Credit Card
A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
W-2
A statement of an individual's annual wages and taxes provided by an employer that must be included with the employee's federal, state, and city income tax returns.
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.
Spoofing
A technique intruders use to make their network or internet transmission appear legitimate to a victim computer or network
NAFTA
A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries.
Trade School
A type of higher learning school that focuses on job skill training for specific career fields rather than academics in liberal arts
Money Market Account
A type of savings account that pays a higher interest rate because the financial institution invests the money you deposit.
Advertising
A written or spoken media message designed to interest consumers in purchasing a product or service
The Children's Online Privacy Protection Act
Aims to protect the privacy of children under the age of 13 by requesting parental consent for the collection or use of any personal information of the users.
Traditional IRA
An individual retirement account that allows individuals to contribute pre-tax income to investments that grow tax deferred
Certificate of Deposit (CD)
An interest-earning deposit that requires the funds to remain deposited for a fixed term. Withdrawal of the funds before the term expires results in a financial penalty.
Mutual Fund
An investment program funded by shareholders that trades in diversified holdings and is professionally managed.
Promotion
Any form of communication used to inform, persuade, or remind
Predatory Lending
Any of a number of fraudulent, deceptive, discriminatory, or unfavorable lending practices. Many of these practices are illegal, while others are legal but not in the best interest of the borrowers.
Disposable Income
Income remaining for a person to spend or save after all taxes have been paid
Credit Card Fraud
Intentionally using someone's credit card to steal money or goods
Free Trade
International trade left to its natural course without tariffs, quotas, or other restrictions.
Power of Attorney (POA)
Legal document in which one person appoints another person to act as an agent on his or her behalf
Forgery
The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
Counterfeiting
The making or distributing of fake money
Policy Limit
The maximum benefit an insurance company will pay a policyholder if/when an insured event occurs.
Bitcoin
The most popular and fastest-growing digital currency
Retirement
The period of one's life after leaving one's job and ceasing to work.
Skimming
The practice of stealing money from an account, budget, etc. over a period of time in amounts that cannot be easily noticed.
Marketing
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
Specialization
The process wherein a company or individual decides to focus their labor on a specific type of production
Aspirational Buying
When consumers are encouraged to live like those they admire, even if they can't afford it.
Fraud
Wrongful or criminal deception intended to result in financial or personal gain