Personal Finance Terminology and Concepts, Exams of Nursing

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WISE & Everfi Financial Literacy Test

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1040 - Answer A tax form filled out by an individual and filed with the IRS that determines the amount of income tax owed in a single year. 1040EZ - Answer A tax form, similar to the 1040 filled out by an individual and filed with the IRS. The form is used to determine the amount of income tax owed to the IRS in a single year. The 1040EZ form is used in simpler tax situations. 401(k) - Answer A retirement account offered through an employer, where an employee can contribute money from his or her paycheck before or after taxes. 403(b) - Answer A retirement account similar to a 401(k) plan, but offered by non-profit organizations, like universities or charitable organizations. 529 college saving plan - Answer A savings plan offering tax benefits that can be used for any qualified educational expenses. Asset - Answer Property owned by an individual or organization that has some value. Can refer to physical items (like a house or car) or to intangible items (like a stock or bond). Associate's degree - Answer A degree granted after two years of study, often by a community or junior college. ATM Card - Answer A payment type similar to a debit card that allows you to make electronic purchases but requires that you enter a PIN (Personal Identification Number) for any transaction. Annual Percentage Rate (APR) - Answer Another name for the interest rate charged on the balance of a credit card. Auto insurance - Answer A type of insurance that protects a policyholder in the case of a car accident. Most states require it by law.

Bachelor's degree - Answer A degree awarded by a college or university for completing four years of undergraduate studies. Balance - Answer The total amount of money in a banking account at any given time. Balance Transfer - Answer A transfer of your existing credit card balance to another credit card. Balance transfers are typically used when a consumer wants to transfer their credit card debt onto a card with a lower interest rate. Bonds - Answer A bond is basically a loan, except that in this case, you're the lender. When you buy a bond, you loan an amount of money to the organization issuing the bond at a certain interest rate for a certain period of time. You are paid interest from this loan at regular periods, and then, when the bond matures, you get back your initial investment plus any additional interest. Treasury and municipal bonds are specific types of bonds. Budget - Answer A budget is a plan of how you will spend the money that you make or receive. Cash Advance - Answer A loan of cash you obtain with a credit card. Certificate of deposit - Answer A type of savings vehicle in which you put your money away for a certain amount of time, called a term, to allow your principal to earn interest. Charge Card - Answer A payment type that works just like credit cards except the balance must be paid in full every month. Claim - Answer A claim is the request you make to your insurance company for payment of the benefits allowed by your coverage. For instance, if you receive a bill for repairs made to your car, you might submit a claim to your auto insurance company to request they pay the bill for you. Compound Interest - Answer Compound interest is interest that's generated not only from the money you put into an account, but also from the interest you make on that money. In other words, with compound interest, you earn interest on your interest. Compounding frequency - Answer The number of compounding periods in one year. The greater the compounding frequency, the more often

your interest is calculated and added back into your account. Daily is much better than annually. Consilidation Loans - Answer These combine several student loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. Consumer Fraud - Answer When a product or service is illegally used to deceive you into sending money or signing up with a phony service. Consumer fraud scams frequently start with a fake email, letter or phone call. Co-Pay - Answer A fixed fee that an individual pays for specific medical services, like a visit to the doctor's office. Coverage - Answer Your coverage refers to the range of protection you are eligible to receive from an insurance plan. Insurance plans can have different coverage even if they're the same type of insurance Credit Bureaus - Answer Credit bureaus, also called credit agencies or credit reporting agencies, are companies that collect credit information about individuals. They then calculate a credit score for each individual based on this information. Note that credit bureaus are private, for- profit businesses-they are not part of the government, though they are overseen by various government agencies. In the United States, the three major credit bureaus are Equifax, Experian, and TransUnion. Credit Cards - Answer A credit card is a payment type that does not automatically draw money from your account. Instead, it provides a short-term loan that you can use to make everyday purchases. Credit card loans are unsecured, which means the credit card company can't take your valuables away from you if you don't pay the loan back. This is why credit card companies charge a high interest rate on the money you owe them--so they can make money off of your loan. Credit History - Answer Credit history is a record of a person's borrowing and repayment activity. Whenever you take out a loan or a line of credit, it goes on your credit history, along with all the payments you make towards the loan. This includes any detrimental information such as late payments. Consumer credit history is tracked by the credit bureaus. Your credit history is the information that goes into your credit report, though the two terms are

sometimes used interchangeably. Think of it like this: Credit history is what you've done, while a credit report is where it's written down. Credit Limit - Answer The amount of money that you are able to charge to a credit card. If you exceed this limit, your purchase may not go through and you could be penalized. Credit Report - Answer A credit report is a record that details a person's credit history. It also includes identifying information, such as names and addresses, so that an individual can be matched with his or her credit history. Credit Score - Answer Your credit score is a numerical rating of your credit-worthiness (how likely you are to pay off your debts). In the United States, the most commonly used credit score is the FICO score. Credit score is based on the information in credit reports from the three main credit bureaus. Debit Card - Answer A payment type that allows you to make electronic purchases that debit the cost of the purchase directly from your checking account. Debit - Answer When money is taken out of a bank account (also known as a 'withdrawal'). Deductible - Answer Your deductible is the amount you are required to pay toward each claim you make before your insurance kicks in. This cost is in addition to the regular price of your premium. Deduction - Answer In tax terms, an expense incurred by a taxpayer that is subtracted from gross income when the taxpayer computes his or her income taxes. Default - Answer Occurs when a borrower is unable or unwilling to repay a debt or required payment Deposit - Answer When money is added into a bank account (also known as a 'credit'). Direct debit - Answer Also known as ACH (Automatic Clearing House) transfer. Allows you to have money come out of your account one time or automatically. Direct deposit - Answer Also known as ACH (Automatic Clearing House) transfer. Allows you to have money come into your account one time or automatically.

Disability insurance - Answer A type of insurance that helps cover lost income when an illness or injury prevents you from working. Down Payment - Answer An upfront payment made when an item is bought on credit. Down payments are usually provided at the time of purchase particularly when purchasing larger items, like a house or car. Expenses - Answer Expenses are anything you spend money on, from a pack of gum to your monthly cell phone bill. FAFSA - Answer FAFSA is the Free Application for Federal Student Aid. This is the main form students use to apply for federal education grants and loans. The amount of money a student is given or loaned depends on several factors, such as your family's income, your marital status, the type of school you're planning to attend, and more. FDIC - Answer FDIC stands for the Federal Deposit Insurance Corporation, which insures deposits at banks that have purchased the coverage. FICO - Answer FICO is an acronym for the Fair Isaac Corporation, the company that developed the FICO score, which is the most commonly used credit score in the United States. There are others, but FICO is most commonly used. When someone says 'credit score,' it's almost always FICO they're talking about. FICO scores range from 300 to 850. Federal Income Tax Bracket - Answer Brackets that determine, based on how much income an individual makes, what percentage of that income will be owed in taxes. Federal Income Tax - Answer The federal government charges income tax on all its residents. In this tax system, you are taxed on the money you earn while working. Federal Reserve Bank - Answer The Federal Reserve is the central banking system of the United States. It is composed of a Board of Governors, the Federal Open Market Committee (FOMC), and 12 regional Federal Reserve Banks. These three parts work together to prevent banking disasters and promote a healthy economy. Federal Student Loans - Answer Federal Student Loans are offered directly to students by the government. Federal law sets the maximum

interest rates and fees lenders may charge for these loans. Because of this, their interest rates are lower than interest rates on other types of loans. Federal Student Loans are awarded to students and the parents of students based primarily on financial need. Federal Work-Study Program - Answer A part-time employment that can be awarded as part of a federal financial aid package. Fee Schedule - Answer A detail of all the fees that may be charged on a bank account. Fixed Rate - Answer This refers to an interest rate that remains fixed, or the same, over the life of the loan Foreclosure - Answer The process by which a bank or other entity takes possession of a mortgaged property when mortgage payments are not being made. Grace Period - Answer In reference to credit cards, this is the amount of time you have to pay back a balance before it starts accumulating interest. Grant - Answer Grants are given to students to help pay for their education and do not have to be repaid. Students must apply for grants, which a school or organization usually awards based on merit, financial need, or a combination of the two Health insurance - Answer A type of insurance that covers the cost of medical expenses. Homeowners insurance - Answer A type of insurance that covers your home as well as your possessions inside it in case of damage or loss. IRA - Answer Stands for Individual Retirement Account. A retirement account designed for individual savers that offers tax savings, but has contribution limits and withdrawal restrictions IRS - Answer Stands for the Internal Revenue Service. The government agency in charge of collecting taxes from US citizens. Identity Theft - Answer A form of fraud. Identify thieves use another person's personal information in order to steal that person's money or gain access to other benefits. Common forms are credit card fraud, phone and utility theft, and

banking fraud. Income - Answer The government defines income as any form of money, property, or services that you receive. Initial Fraud Alert - Answer An alert put on your credit file to help prevent additional identity theft. The alert stays on your file for 90 days, at which point you can choose to renew it if necessary Interest Rate - Answer An interest rate is the percentage of interest you either make or pay on a principal (like 1% or 5%). Say you have a savings account with $1,000 and a 5% interest rate. 5% of $1,000 nets you $ Interest - Answer Interest is the fee someone pays to be able to borrow money. You either pay interest on money you borrow (like when you take out a loan to buy a car) or you make interest on the money you save (like when a bank pays you interest on money you put into a savings account). Investment - Answer When you spend money on something to gain profitable returns, as interest, income, or appreciation in value. Landlord - Answer The owner of a property. Lease - Answer A lease is a rental agreement. It lays out the terms for the property you'd like to rent: how much you're going to pay and how long (and how often) you're going to pay it. The most familiar use of a lease is in the rental of housing, like an apartment. In this case, it refers to the document you sign with the owner that gives you the right to live there in exchange for paying the rent and complying with any other requirements. It's also used when leasing a car, which is really just a long-term rental agreement. You lease the car for a period of time, and when that time is up, you return it to the dealer. Life Insurance - Answer A type of insurance that ensures that another person (called a beneficiary) will be financially protected if you pass away Liquidity - Answer Refers to how easily and quickly your assets, like your money, can be moved. Loan Officer - Answer Someone who advises, evaluates, and signs off on loans to individuals and business.

Maintenance Costs - Answer Costs associated with ownership of a house, a car, or a similar purchase that are the owner's responsibility. Medicare - Answer A tax that pays for health care for people aged 65 and over. Minimum Monthly Payment - Answer In regards to credit cards, this refers to the least amount of money you are obligated to pay back on a monthly basis to avoid fees and penalties associated with not paying the minimum amount. Money order - Answer a printed order for payment of a specified sum, issued by a bank or post office. Mortgage - Answer A mortgage is a type of loan used to finance the purchase of real estate. At a basic level, it works just like any other loan: someone wants to purchase something (in this case, a house) but doesn't have enough money to p ay for it all at once, so they borrow money from a bank to do so. Then they pay back the money they borrowed in installments, with interest. Mutual Funds - Answer A mutual fund is a collection of investment vehicles that you can buy as a single package, rather than purchasing individual stocks, bonds, and other investments yourself. Investors purchase shares of the mutual fund. The mutual fund then uses that money to buy the investment vehicles that go in the fund. Online Transfer - Answer A transfer of funds from one account or individual to another through a bank's website or mobile application. Payday Lenders - Answer Payday lenders offer loans, with payment due in full at the borrower's next paycheck. Charge very high interest rates. AVOID them. Payment History - Answer A history of the payments you have made on all credit you have obtained, which affects your credit score. Tracks such things as whether or not you pay your bills on time, whether or not you always pay at least the minimum amount, etc. Pell grant - Answer A grant awarded based on financial need by the U.S. federal government to help students pay for higher education. Perkins Loan - Answer One of the most common types of federal student loans, awarded based financial need. Perkins loans have a set 5% interest rate for 2018.

Personal Check - Answer A paper payment type. You can write and sign a personal check to pay for purchases at places that accept them, and funds from personal checks are drawn directly from your checking account. Phishing scam - Answer A scam where someone tries to deceive you into providing personal information by impersonating someone, like a bank representative. PIN - Answer Stands for "Personal Identification Number". Often used to complete a transaction made with a debit card. Policy - Answer When relating to insurance, a policy is the document that outlines the terms and conditions for your insurance coverage Investment Portfolio - Answer When relating to investments, a portfolio refers to the range of investments held by an individual or organization. Premium - Answer The premium is the amount you pay to have insurance for a specific amount of time. A premium covers a set amount of time (for example, a year) and payment may be due all at once or divided and paid on a regular basis, such as monthly. Prepaid card - Answer A card that allows you to put a specific amount of money onto them. Prepaid cards usually come with additional fees and charges. Principal - Answer Principal is the sum of money you put into an account or the amount of money (minus interest) you owe on a debt. So if you open an account with $500 (or take out a loan for $500), the principal amount in either case is $500. Private Student Loans - Answer are financed by private lenders rather than the government. Interest rates are higher on these types of student loans. Property Tax - Answer Property taxes are taxes an owner pays on the value of any owned property, including land, buildings, or houses. Rate of Return - Answer Rate of return (ROR) is the ratio of the money you gain on an investment in relation to the amount of money that was invested. For example, if you invest $100 and generate a $25 return, the investment has a 25% rate

of return: $25 return / $100 investment = 25% ROR. Rate of return is often expressed in terms of the annual rate of return on an investment. So, if an investment has a 15% annual rate of return and you invest $1,000 at the beginning of the year, at the end of the year you'd have $1,150 altogether. Vehicle Registration fees - Answer When referring to a vehicle, registration fees are a compulsory charge for registering the vehicle with a government authority, usually a state or county Renters Insurance - Answer A type of insurance that can protect you from damage or loss of your items in a rental property. Rent-to-own Agreement - Answer An agreement where your rental payment goes towards owning the property later on. Required Minimum Balance - Answer A certain amount of money you must have in some bank accounts at any given time to avoid being penalized Return - Answer Refers to how much money an investor could potentially earn from an investment. Usually expressed as a percentage. Risk - Answer In investing terms, the chance you take that an investment may or may not result in a return. Roth IRA - Answer An individual retirement account designed for individual savers. With a Roth IRA, the money you contribute is taxed, which means the money comes out tax-free when you retire. Roth IRAs also allow you to withdraw some of your contributions before retirement without paying a penalty, if you use it to pay for certain things like buying your first home Sales Tax - Answer Many states charge sales tax. This means when you pay for something, the sales tax is added to the total before you pay. Sales tax is usually a percentage of the price of what you purchase. This sales tax rate varies from state to state. Sales taxes don't figure into income tax. Savings Accounts - Answer A type of savings vehicle in which you earn interest on the principal, usually without minimum balance requirements but lower interest rates. Savings Plans - Answer A savings plan is a way to save money for the long-term, which for most people means

retirement. Examples of these savings plans include 401(k) and 403(b)s, which are employer-sponsored retirement plans to which both the employee and employer contribute, and IRA and Roth IRAs, which are retirement accounts set up by individuals. Scholarship - Answer Scholarships are given to students to help pay for their education and do not have to be repaid. Students must apply for scholarships, which a school or organization usually awards based on merit, financial need, or a combination of the two. Security Deposit - Answer An amount of money that the property owner holds onto during the lease that can later be used to pay for any damages to the property caused by the renter. Usually equal to one month's rent Shareholders - Answer In investing terms, another name for a Stockholder. Shares - Answer In investing terms, another name for a Stock. Social Security - Answer A tax that pays for the retirement benefits for people who are currently retired and for the future retired population. Social Security Number - Answer A Social Security number (SSN) is a 9-digit number issued to U.S. citizens, permanent residents, and temporary working residents. It is chi efly used to track down who should be paying taxes, and more recently as a national identification number. Each individual has his or her own unique number. Stafford Loan - Answer One of the most common types of federal student loan, awarded based on limits that are set for any individual loan as well as on financial need. State Income Tax - Answer Most states charge income tax on all its residents. In this tax system, you are taxed on the money you earn while working. State income taxes are charged in addition to federal taxes, though requirements for state income tax vary from state to state. Stock - Answer Shares of ownership in a company. If the company grows in value, then the value of the stock grows in value as well Stock Exchange - Answer A stock exchange is a place where stocks are bought and sold. This is known as trading stocks. A stock

exchange can be a real, physical location (the building where trading takes place), but it can also be more of an idea, too. For example, if you're making an electronic trade on the New York Stock Exchange, nothing will actually happen in the NYSE building, but the trade will still happen on that exchange Stockbroker - Answer A stockbroker is an individual who has a license to buy and sell stocks and other investments on one or more stock exchanges. Without a license, you can't buy or sell stock yourself. Instead, you have to contact your broker, who will then make the transaction on your behalf. Some brokers simply carry out your instructions on what investments to make, while others act as advisors, or even handle their clients' investment decisions themselves. Stockholder - Answer Someone who owns stock in a company. Stocks - Answer A stock is a share of ownership in a company. Stocks are also called shares, or shares of stock. Owning stock in a company means that you actually own a piece of the company. Someone who owns stock is called a stockholder or shareholder. All the stockholders in a company share in the ownership of the company. Some stocks pay dividends, which are the company's profits divided up and distributed among all shareholders. Stocks are bought and sold on stock exchanges. Stock quotes, published both online and in print, provide information about stocks' performance. The total value of all the stocks held by investors in a company is known as the company's market capitalization. Subsidized Student Loan - Answer This is a type of federal student loan on which the government pays the interest that accrues while a student is in school. Tax Bracket - Answer Brackets that determine, based on how much income an individual makes, what percentage of that income will be owed in taxes Tax Deduction - Answer An expense incurred by a taxpayer that is subtracted from gross income when the taxpayer computes his or her income taxes. Tenant - Answer The renter of a property

Unsubsidized Student Loan - Answer This is a type of federal student loan on which the government does not pay the interest that accrues while a student is in school. Utilities - Answer Services - like electricity, water or gas - provided to the public. Variable Rate - Answer This refers to an interest rate that is based on an interest rate index, which means the rate can change over the life of the loan. W-2 - Answer A tax form employers send to each of their employees listing how much money that individual made during the last year and how much has already been paid in taxes. W-4 - Answer A tax form an employee fills out that tells the IRS how much money to take out of each of their paychecks. Withdrawal - Answer When money is taken out of a bank account (also known as a 'debit'). Withholding - Answer An amount taken out of you paycheck to pay for taxes RULE OF 72 - Answer This formula is useful for understanding the nature of compound interest. Examples: At 6% interest, your money takes 72/6 or 12 years to double. BEAR MARKET - Answer When the stock market declines. Bull Market - Answer When the stock market is increasing The lower the insurance premium - Answer the higher the deductible The higher the insurance premium - Answer the lower the deductible APR (Annual Percentage Rate) - Answer is the annual rate charged for borrowing or earned through an investment without taking into account the compounding of interest within that year. APY (Annual Percentage Yield) - Answer is the effective annual rate of return taking into account the effect of compounding interest. calculated by: Compounding - Answer earning interest on interest All investors want to - Answer maximize compounding on their investments, while at the same time minimize it on their loans. Net Worth= - Answer Assets-Liabilities

Affects the price of a bond - Answer Credit rating of bond, inflation rate, interest rate Roth IRA - Answer Can be used to be a home 401K loan - Answer You can borrow money from your 401K, but you will have to make payments to pay it back How is the Social Security Benefit calculated? - Answer Averaged indexed monthly earning over 35 years in which you earned the most FDIC protects each account at a bank - Answer for up to $250,000 per account Where is the least risky place to invest your money? - Answer bank money market account What is true about municipal bonds? - Answer issued by a state or locality, they are federally tax-free Tammy bought 100 shares of Widget stock for $30 a share. The Widget stock is now selling for $25 a share. The 52-week trading range has been between $25 and $35, What is true? - Answer If Tammy sells her shares now, she will lose $500. If you had money invested at 4%, how long would it take your money to double? - Answer 72/4= If you had money invested at 1% how long would it take your money to double? - Answer 72/1= If you had money invested at 12% how long would it take your money to double? - Answer 72/12= What would earn you the most interest--interest compounded yearly, quarterly, monthly or daily? - Answer daily You pawned a watch for $150. You redeemed your watch for $180. The $30 difference between what you pawned the watch for and what you redeemed it for is: - Answer interest You have a tax-deferred retirement plan. This means: - Answer you will pay tax when you withdraw the money in this plan What does it mean that we are a "cashless society"? - Answer Americans are using debit cards, credit cards, and checks instead of cash

What do you need to have a balanced budget? - Answer reality, responsibility, and reliability What does the SEC do? - Answer protects investors and regulates markets What doe the FDIC do? - Answer they can take over a failing bank How long does an unpaid credit card bill stay on your credit report? - Answer 7 years If a couple wants to renegotiate the terms of their debt, so they would file ______ bankruptcy. - Answer Chapter 13 If a couple was to wipe out their debt in terms of bankruptcy they would file _______ bankruptcy - Answer Chapter 7--simplest and most common form of bankruptcy What is an example of an asset? - Answer mutual fund, savings account, 401K Which are examples of liabilities (debt)? - Answer mortgage loan, car loan, credit card debt The following are examples of collateralized loans because the lender has something to take back (repossession) if a person doesn't make the payments - Answer Mortgage loan (house), car loan, jewelry (pawnshop loan) boat Repossesion - Answer the action of retaking possession of something, in particular when a buyer defaults on payments. What is an unsecured loan? - Answer is a loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan, and it is also called a signature loan or a personal loan. Ex. Student loan Auto insurance takes into consideration: - Answer Age, gender, neighborhood, marital status, but not your health If you have a variable 30-year mortgage, what is true about your payment? - Answer Your payments will vary and not be the same. If you want more money to invest, you should - Answer reduce your variable expenses (expenses that change from month to month) What is important for someone with a credit card to know? - Answer If you don't pay your minimum balance, they can raise your interest rate What is one feature of debit cards? - Answer they usually require a pin #.

Predatory lending - Answer is the unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. How can you avoid predatory lenders? - Answer compare lenders' offers Finance company loans are known for - Answer charging high interest rates You co-signed a loan for your neighbor. What is true? - Answer You will have to pay the full amount if your neighbor doesn't. Your spouse dies with no will; he has $1000 credit card debt. - Answer You have to pay if you have a joint credit card What is one drawback of an HMO? - Answer you have to stay in the network or pay out of pocket Wills usually include the following: - Answer Naming a guardian, naming an executor, distributing your assets Last Will And Testament: - Answer is a legal document that communicates a person's final wishes pertaining to possessions and dependents after they die. If you are in the assigned insurance risk pool, it is because - Answer you had three accidents in an 18 month period Secondary Market - Answer Stock Market (NY Stock Exchange NYSE, American Stock Exchange AMEX, NASDQ) IPO (Initial Public Offering) - Answer is the first time that the stock of a private company is offered to the public. NYSE - Answer New York Stock Exchange. The largest stock market or secondary in the world. AMEX - Answer American Stock Exchange (3rd largest) NASDQ - Answer A global electronic marketplace for buying and selling securities, and technology stocks. When interest rates increase, what happens to stock prices? - Answer They go down What is true about a Treasury Bill (T-Bills)? - Answer they are sold in terms of a few days to 52 weeks, they are sold at a discount from face value, you can by them in multiples of 100, you can sell them before they mature

Treasury bills (or T-bills) - Answer are short-term securities that mature in one year or less from their issue date. Preferred stock - Answer stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends. Common stock - Answer is a security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. The job of a financial planner is to: - Answer Help the client reach her or his financial goals What kind of investment is BEST when you think interest rates will go up in the near future? - Answer 6 month CD If you bank in Virginia, why does a check from Illinois take longer to cash? - Answer Out of state checks take longer to cash What is the safest way to endorse a check? - Answer Put your bank account number on the back of the check, sign your name under it and write "For Deposit Only" If you have direct deposit and $250 is direct-deposited into your checking account, when can you withdraw $100? - Answer right away Fiat Money? - Answer Money that is backed by the full faith and credit of the government that issued it Wendy has a flat screen television that cost her $5000. What type of insurance policy would you recommend for Wendy? - Answer a floater policy Thomas thinks the stock market will go up by 20% in the near future. Thomas predicts a _____ market. - Answer bull NCUA - Answer National Credit Union Administration, insures the deposits of members SMART Goal - Answer a goal that is specific, measurable, achievable, results-focused, and time- bound. EFT (Electronic Funds Transfer) - Answer is a system of transferring money from one bank account directly to another without any paper money changing hands. Bankruptcy - Answer is a legal process which happens when a person or an organization does not have enough money to pay all of its debts

Chapter 7 Bankruptcy - Answer The most common form of bankruptcy. It can be filed by businesses or individuals who are unable to pay their debt. It is also called liquidation bankruptcy because some of a debtor's property may be sold (liquidated) to satisfy creditors. How long can bankruptcies stay on a credit report? - Answer Bankruptcies can be reported for 10 years from the filing date Chapter 13 Bankruptcy - Answer Chapter 13 is the most popular form of bankruptcy in the United States for ordinary people. Some of your debts may be forgiven (discharged), but you will have to pay back a portion of your debt according to a court ordered payment plan Chapter 11 Bankruptcy - Answer Chapter 11 bankruptcy is a complicated type of bankruptcy that reorganizes the debtor's finances, usually reducing the amount of debt owed and changing debt repayment terms. A Chapter 11 bankruptcy case allows a business to keep running while it finds ways to reduce and arrange payment of its debts. Bankruptcy and Student Loan Debt - Answer Student loan debt will not be dismissed by filing for bankruptcy unless one can prove undue hardship (very hard to do). ACH - Answer Automated Clearing House is an electronic network for financial transactions in the U.S. ACH credit transfers include direct deposit, payroll, and vendor payments APY - Answer Annual percentage yield is the effective annual rate of return taking into account the effect of compounding interest. ATM - Answer Automated Teller Machine a machine that dispenses cash Garnishment - Answer A court order directing wages paid by an employer be held from an employees paycheck to satisfy a debt owed to someone. EFT - Answer Electronic Funds Transfer Lien - Answer A right to keep possession or property of any individual until the money they owe is paid The higher the insurance premium the lower the - Answer deductible Stock Split - Answer If a company splits its stock 2 for 1 the number of shares for the stockholders double and the price per share is cut in half SEC - Answer Securities and Exchange Commission protects investors and regulates the stock market

Check Endorsement - Answer Signature included on the front or back of a check acknowledging that both parties have agreed to exchange the specified amount on the document. The signature or account information included on the back of a check acknowledges that the intended recipient received the document and deposited it. SMART GOAL - Answer Specific, measurable, attainable, realistic, timely 529 College Saving Plan - Answer A savings plan offering tax benefits that can be used for any qualified educational expenses. Certified Check - Answer Is a personal check written by a bank account holder, drawn on the account and guaranteed by the bank. The bank verifies that the signature is genuine and that the check writer has enough money for the transaction, and sets aside the full amount of the check for when it's cashed or deposited. Debt to Income Ratio - Answer this ratio is one way lenders, measure an individual's ability to manage monthly payment and repay debts. DTI is calculated by dividing total recurring monthly debt by gross monthly income, and it is expressed as a percentage. Collateralized Loan - Answer a type of loan where you use something that you own to back the loan and can be taken by the bank or PAWNSHOP if you fail to make your loan payments Collateral - Answer is something you own that the bank can take if you fail to pay off your debt or loan. This can be any item of value that is accepted as an alternate form of repayment in case of default. If loan payments are not made, assets can be seized and sold by banks. Installment Loan - Answer you borrow a specific dollar amount from a lender and you agree to pay the loan back, plus interest, in a series of monthly payments. Revolving credit - Answer revolving credit or open ended credit refers to an account that has a credit limit set by the lender but allows you to determine how much you will charge and how much you will pay off each month. 403 B Retirement Plan - Answer s a retirement plan for specific employees of public schools, tax-exempt organizations and certain ministers. These plans can invest in either annuities or mutual funds. Pawnshop Loan - Answer Pawn loans are a quick, easy and expensive way to borrow money without a credit check or hassle. Loans are based on the value of your collateral, not your credit rating or pay schedule. They charge high interest rates. AVOID. Unsecured loan - Answer is a loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral.

New York Stock Exchange - Answer The largest stock (securities) exchange in the world.