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40 Cards in this Set
- Front
- Back
Home ownership would be considered a |
long-term need. |
|
A typical down payment for a loan is about |
10 to 20 percent of the purchase price. |
|
Government student loans |
usually do not require payments until after graduation. |
|
Work-study programs allow students to earn money by working |
on campus. |
|
Interest paid on the original principal plus accumulated interest is called |
compound interest. |
|
The widest variety of banking services is provided at a |
commercial bank. |
|
A savings and loan association |
is organized primarily to lend money for home mortgages. |
|
Savings and checking accounts at a credit union are called |
share accounts. |
|
Savings accounts protected by the FDIC are protected from loss up to |
$250,000. |
|
You can authorize your employer to make automatic deductions from your paycheck each period with a(n) |
payroll savings plan. |
|
The use of long-term savings to earn a financial reward is called |
investing. |
|
According to the Rule of 72, if an investment of $5,000 is yield an average of 6 percent, it will take |
12 years for that investment to be worth $10,000. |
|
A put-and-take account is |
typically the first stage of investing. |
|
Maximization of return in the next five to ten years is the goal of |
strategic investing. |
|
A type of risk that is caused by the business cycle is |
market risk. |
|
Making your decisions quickly to take advantage of the market |
is not a wise investment practice. |
|
A daily newspaper that provides detailed coverage of the business and financial world is |
The Wall Street Journal. |
|
Professional investment planners who are trained to give investment advice based on your goals, age, lifestyle, and other factors are called |
certified financial planners. |
|
A corporate bond |
would be considered the lowest risk investment. |
|
The right, but not the obligation, to buy or sell a commodity or stock for a specified price within a specified time period is called a(n) |
option. |
|
50 shares |
would be considered an odd lot of stocks. |
|
An increase in the value of a stock over time is called a(n) |
capital gain. |
|
A common stock |
allows stockholders to influence corporate policy. |
|
Stocks in young, often small corporations that have higher overall risk than stocks of successful, long-established companies are called |
emerging stocks. |
|
The price for which a stock is bought and sold in the marketplace is called the |
market value. |
|
Current Profit on Stock/Purchase Price + Commission = |
Return on Investment |
|
NASDAQ |
is not a securities exchange. |
|
Buying on margin is an investment technique |
that would more likely be used by a day trader. |
|
Using dividends previously earned on a stock to buy more shares is called |
dividend reinvestment. |
|
The price of a share of stock divided by the corporation's earnings over the past 12 months is the |
P/E ratio. |
|
The need for credit arose in the United States with the dawn of the |
Industrial Revolution. |
|
Reserving a hotel toom |
would most likely be difficult without a credit card. |
|
Tammi withdraws money from the bank to pay for a stereo. She obtains a loan. What is she? |
Tammi is a debtor. |
|
Your financial position is based on your |
capital. |
|
The total dollar amount of all interest and fees you pay for the use of credit is called the |
finance charge. |
|
A service available to charge customers whereby purchases are not billed until much later than the standard billing time is called |
deferred billing. |
|
One difference between a charge card and a credit card is that |
the full balance on a charge card must be paid each month. |
|
If you go over your credit limit or make your payment late, you will likely be charged a(n) |
penalty fee. |
|
A furniture store |
is least likely to offer service credit. |
|
A legal business that makes high-interest loans based on the value of personal possessions is called a |
pawnbroker. |