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