Personal finance final exams questions and answers, Exams of Nursing

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Personal finance final exams questions and answers annual fee - fee charged by a credit card company for the use of their credit card annual percentage rate - cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan ATM - Automatic Teller Machine-a bank machine that gives out cash from your account and accepts deposits around the clock. bank - stores money and loans bankruptcy - legal procedure for dealing with debt problems of individuals and businesses; specifically a legal court case filed under one of the chapters of title II of the u.s code bond - debt instrument where an issuer such as a corporation, municipilaty or gov agency owes you money; a form of I.O.U.; the issuer makes regular interest payments on the bond and promises to pay back or redeem the face value of the bond at a specified point in the future Personal finance final exams questions and answers budget - cash flow plan; assigns every dollar to a specific category/ expense at the beginning of each month capital gain - positive difference between an assets price when bought and its price when sold capital loss - negative difference between an assets price when bought and its price when sold career - your line of work cash flow - Movement of the money you receive and the money you spend. chapter 7 - chapter of bankruptcy code providing for liquidation of the debtor's assets in order to repay the creditors; certain assets or aggregate value of assets of the debtor may be exempt based on state law chapter 13 - chapter of bankruptcy providing for an individual to repay debts over time, usually 3-5 years; debtor makes periodic payment to bankruptcy trustee who in turn pays the creditors Personal finance final exams questions and answers diversification - to spread around one's investments dollars among several different classes of financial assets and among the securities of many issuers; results in lowered risk dividend - distribution of a portion of a company's earnings, decided by board of directors, to a class of its shareholders; generally distributed in form of cash/stock dollar cost averaging - The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price earned interest - The payment you receive for allowing a financial institution or corporation to use your money. electronic funds transfer - a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents endorse - to support entrepeneur - person who starts a business; risk taker Personal finance final exams questions and answers expense - cost of goods or services federal income tax - A payroll deduction collected by employers by law and sent to the federal government to support governmental programs. finance charge - is the total dollar amount you pay to use credit. financial planning - plan of action that allows a person to meet not only the immediate needs but also long-term goals fixed expenses - set costs that must be paid such as rent, insurance, and car payments freeware - software that is provided without charge goal - something you want to achieve grace period - time period during which a borrower can pay the full balance of a credit due with no finance charges Personal finance final exams questions and answers gross income - a person's total income prior to withholdings and deductions identity theft - When someone uses your name, Social Security number, credit card number, and other personal information without your permission. income - earnings from work or investments inflation - rate at which the general level of prices for goods and services rise insurance - protection against future loss insurance policy - a written contract between the insured and an insurance company that promises to pay for all or part of a loss insurance premium - amount paid on an insurance policy per a given time period interest - 1) charge for borrowed money generally defined as a percent. 2) money paid to savers and investors by financial institutions for the use of their money Personal finance final exams questions and answers the percentage by which your money grows is called the _________ - rate of return _________ says that whatever can go wrong will go wrong - murphy's law savings is about: - contentment and emotion what should you save for? - wealth building, emergency fund and purchases what is true about the concept of saving? - saving must become a priority a sinking fund approach means: - saving and paying cash what is true about a one time investment for 40 years? - the annual interest rate does matter when making a one time investment what is the next step after you have a fully funded emergency fund? - invest 15% of your income into roth ira and pre-tax retirement plans Personal finance final exams questions and answers using the sinking fund approach, how much do you have to save to buy a $5000 car next year? - 416.66 how much money should you have in your emergency fund if you are working on baby step 2? - 500 or 1000 in _________ investors pool their money - mutual funds _______ are savings accounts with insurance companies - annuities what is true about investments? - never invest using borrowed money, diversification will help lower risk, and never invest only for tax purposes what is true about investing in single stocks? - there is a high degree of risk a collection of money from different investors, which is used to purchase stocks, or other investments, and is managed by a fund manager: - mutual funds Personal finance final exams questions and answers the most aggressive mutual funds tend to be from - companies that are younger and growing what is the best option if you begin losing money in your mutual fund? - leave it alone and continue to invest money in the fund aggressive growth funds - small cap fund growth funds - mid cap growth and income funds - large cap T or F pre-tax means the government allows you to invest money after taxes are taken out - false before T or F: ESAs are a good way to save for college - true