I2B1 – Final Units 1,8,9, 10,11,12 You are responsible for YOU

Terms to know  Check to see if you know the following Modified Capitalism Needs - Wants – unlimited Resources – Limited Know how to make decsions!!

Markets  What kind of market do we have  Voluntary  Free enterprise  Limited government controls

What is the economic wheel  Consumers  Workers  Citizens  Our roles, roles of business and government  Public goods, taxes

Banks and Checking  What is the Fed?  Types of banks  Services of banks  Preparation of statements  Types of endorsements  How to balance a check book - at the end

Return on money at banks  Savings accounts  Yields  Interest  Compounded or simple?  Saving vs. investing  CD  IRAs  FDIC

Investing  Stocks and Mutual Funds  Bull vs Bear.  What is the relationship between: Risk Return ( Yield) Liquidity NAV of Stock Mutual Funds and Money Market Mutual Funds

Investing cont.  The DOW  The big economic picture and influence by the FED Why does the FED change the $$ supply?  How to choose your investments  Real Estate? - liquidity?

Insurance Types of coverage Costs of insurance Why have insurance What is risk? How does risk determine your premiums? ( Young Drivers? What is shared risk? Know your coverage!!

Car on top caused the accident People in the top car are injured their medical bills are covered by what coverage? 1.a People in the bottom car are injured – same question… 1.b The damage to top car.. covered by what? 1.c Damages to bottom car… covered by what? 1.d

Car hitting house The damages to the house and everything inside will be paid by the insured’s 2.a ::::::::::::::::: Bodily injury liability Property damages liability

Hit by King Clueless. Man – I should have paid my insurance premiums this month. IF this guy hits you – Who will have to pay for your car and you injuries? What type of coverage do you need to make sure you have? 3.a

WOW - How did that happen? What type of insurance is going to pay for these damages??? 4.a Why? 5.a

How much will it cost me??? Which scenario will the insurance cost more Write A or B on your answer sheet. AB Age 6.A 16 male40 male When you use your car 6.B Work, to drive on my job as pizza delivery guy To church and home on Sundays Number of miles 6.C 52,000/yr10,000/yr Value and type of car 6.D Ford TaurusMustang Convertible Where you live 6.E Bloomington ILDetroit MI Deductible 6.F /per accident /per accident

Still more to know???  Match the following terms with the definition  A. Compulsory Insurance Laws  B. Financial Responsibility Laws  C. Assigned Risk plan  D. No- fault Insurance. These are questions 7.1 – 7.4  1. IF you have been turned down because of a bad driving record you will be put into a group whose premiums are very high but who must be provided with insurance by an insurance company. Each com. Must take a certain number of these.  2. IF you have an accident and no insurance and cannot make good on the claim your license will be suspended or taken away.  3. You cannot get a license without proof of insurance when you have this law in your state.  4. No matter who is at fault each company pays their own insured’s damages. This is to minimize the amount of lawsuits going on over damages.

Homeowners  Cost to replace  Depreciation?  Liability?  Types of coverage - Is basic enough?  Riders for extras

Budget  Failure to Plan is Planning to Fail  Watch where your money goes.  Financial inventory? Balance Sheet Budget sheet  Your financial picture will change  You will have to make decisions just like an economic system – you have limited $$ resources. 

Summary  You have learned things that will stay with you the rest of your life.  Being a good citizen means being responsible for yourself  Making decisions is something you will always have to do.  How can you make $$, keep your $$ safe and have your $$ work for you