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Personal Finance.  What is an overdraft?  NSF check.

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Presentation on theme: "Personal Finance.  What is an overdraft?  NSF check."— Presentation transcript:

1 Personal Finance

2  What is an overdraft?  NSF check

3  What is a certificate of deposit?  Way of saving money, there are restrictions on when you can withdraw your money.

4  State the guidelines for choosing a PIN number.  A number that nobody else could figure out.

5  What is a round lot?  Stocks are traded in multiples of 100.

6  Explain the difference between a debit card and a credit card.  Debit card=way to access money in your checking account  Credit card=loan

7  The most expensive method of using a credit card.  Cash advance or convenience check

8  What does PIN stand for?  Personal identification number

9  What types of public records appear on a person’s credit report?  Divorce  Bankruptcy  Liens  Lawsuits

10  Why is the interest rate usually higher on credit cards than on other types of loans?  Credit cards have a high rate of default & are risky for lenders

11  What is inflation?  The increase in the cost of living.

12  Which stock pays dividends first, preferred or common?  Preferred

13  What is selling short?  Selling stock borrowed from a broker that must later be repaid.

14  A term for the owners of a corporation.  Shareholders or stockholders

15  List the highest bond rating.  AAA

16  A term for a bond in default.  Junk bond

17

18  When a bond is purchased for less than its face value.  Discount

19  Which type of bonds are associated with the highest interest rate? Why?  Corporate, risk

20  A risk where you could experience losses in your income or standard of living.  Personal risk

21  Why do corporations sell bonds?  To raise capital

22  A risk where there is a chance of a loss as well as a chance of a gain.  Speculative risk

23  The policyholder should be put back into the same condition as they were prior to the loss.  Indemnification

24  What is buying on margin?  Using leverage

25  When a bond is purchased for more than its face value.  premium

26  A term for a person who will inherit money from another.  Heir or beneficiary

27  A loan to purchase real estate.  Mortgage

28  Added to an insurance policy to protect high value items.  Personal property floater

29  Why is it usually less expensive to take part in a group health insurance plan that purchase an individual plan?  The risk is spread among more people.

30  Another term for real estate.  Real property

31  This type of tax takes a higher percentage of your income as your income increases.  Progressive tax

32  When a bond is purchased at a premium, the yield will be ________ than the coupon rate.  Lower

33  A tax where the more you earn the less you pay.  Regressive

34  Establishing a monetary fund to cover the cost of a loss.  Self-insurance

35  A crime where a taxpayer does not pay their taxes.  Tax evasion

36  A form that lists a taxpayers total income and taxes deducted from their paycheck for a given year.  W-2

37  When a person dies without a will.  Intestate

38  The person chosen to administer a person’s will.  Executor

39  Who pays a gift tax?  The giver

40  Gambling is this type of risk.  Speculative

41  When should a taxpayer itemize?  When their expenses are larger than the standard deduction.

42  A financial product where a the bank buys your house from you.  Reverse mortgage

43  Another term for a flat tax.  Proportional

44  The date your income tax return must be filed by.  April 15

45  Who pays realtor’s commissions?  The seller, not the buyer.

46  When real property is transferred from the seller to the buyer.  Closing date

47  The highest price a home will bring on the market.  Market value

48  What is a canceled check?  One that has been cashed.

49  An endorsement where the signature of the payee is written exactly as his or her name appears on the front of the check.  Blank endorsement

50  A term for balancing your checkbook.  Reconciling

51  A type of credit card that can only be used at a specific retailer.  Retail credit card

52  What does APR stand for?  Annual percentage rate

53  List one of the 3 major credit bureaus.  Experian  Trans Union  Equifax

54  Amount of time allowed to the cardholder between the day the items are charged on the credit card and the day finance charges are applied.  Grace period

55  When can a person view their credit report for free?  Once per year  When denied credit due to something on their credit report

56  What does the FDIC do?  Provides insurance for depositors at commercial banks

57  Income received by stockholders.  Dividends

58  The over the counter stock market.  NASDAQ

59  The largest stock exchange.  NYSE

60  An increase in the number of shares outstanding of a corporation’s stock.  Stock split

61  When an investor makes money on the sale of stock.  Capital gain

62  Elected by stockholders to guide a corporation.  Board of directors

63  These stocks do well when the economy is growing but usually do poorly in times of recession.  Cyclical stocks

64  Another term for face value.  Par value

65  Bonds with low or no rating.  Junk

66  Bond backed only by the general credit standing of a corporation.  Debenture

67  The cost of insurance.  Premium

68  The possibility of a loss.  Risk

69  One who calculates an insurance premium.  Actuary

70  To take measures to lessen the frequency oR severity of losses that may occur.  Reduce the risk

71  When an investor loses money on the sale of stock.  Capital loss

72  What is an attractive nuisance?  Example: trampoline or swimming pool

73  People who determine the value of property destroyed for insurance companies.  Claims adjustors

74  These people look for evidence of destroyed or damaged property.  Insurance investigators

75  Another term for self- insurance.  Risk assumption

76  Insurance that protects against loss from death.  Life insurance.

77  Being paid twice the death benefit for an accidental death.  Double indemnity

78  A front-end load.  Paid when you buy the mutual fund.

79  Agreements to buy commodities at specified prices on specified dates.  Futures contracts.

80  Example of a progressive tax.  Federal income tax.

81  Items such as coins and antiques are investments known as_______.  Collectibles

82  An example of a regressive tax.  Sales tax

83  As taxable income increases, tax rates ____.  Increases

84  The difference between market value of property and what you owe on it.  Equity

85  Another term for closing costs.  Settlement costs

86  An example of a defined- benefits plan.  pension

87  A legal document authorizing someone to act on your behalf to handle personal affairs.  Power of attorney

88  An IRA that taxes contributions, but not money withdrawn at retirement.  Roth IRA

89  An apartment with one large room that serves as the kitchen, living room, bedroom, plus a bathroom.  Efficiency apartment

90  What does MLS stand for?  Multiple Listing Service

91  A legal document that establishes ownership.  Title

92  The portion of the purchase price that the buyer deposits as evidence of good faith.  Earnest money

93  A formal document that expresses interest in entering into a contract with someone is a(n) _______.  Offer


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