Personal Finance
What
is an overdraft?
NSF check
 What
is a certificate of
deposit?
 Way of saving money, there
are restrictions on when
you can withdraw your
money.
 State
the guidelines for
choosing a PIN number.
 A number that nobody else
could figure out.
 What
is a round lot?
 Stocks are traded in
multiples of 100.
 Explain
the difference between
a debit card and a credit card.
 Debit card=way to access
money in your checking
account
 Credit card=loan
 The
most expensive method of
using a credit card.
 Cash advance or convenience
check
 What
does PIN stand for?
 Personal identification number
 What
types of public records
appear on a person’s credit
report?
 Divorce
 Bankruptcy
 Liens
 Lawsuits
 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
 What
is inflation?
 The increase in the cost of
living.
 Which
stock pays dividends
first, preferred or common?
 Preferred
 What
is selling short?
 Selling stock borrowed
from a broker that must
later be repaid.
A
term for the owners of a
corporation.
 Shareholders or
stockholders
 List
the highest bond
rating.
 AAA
A
term for a bond in
default.
 Junk bond
 When
a bond is purchased
for less than its face value.
 Discount
 Which
type of bonds are
associated with the highest
interest rate? Why?
 Corporate, risk
A
risk where you could
experience losses in your
income or standard of
living.
 Personal risk
 Why
do corporations sell
bonds?
 To raise capital
A
risk where there is a
chance of a loss as well as a
chance of a gain.
 Speculative risk
 The
policyholder should be
put back into the same
condition as they were prior
to the loss.
 Indemnification
 What
is buying on margin?
 Using leverage
 When
a bond is purchased
for more than its face value.
 premium
A
term for a person who
will inherit money from
another.
 Heir or beneficiary
A
loan to purchase real
estate.
 Mortgage
 Added
to an insurance
policy to protect high value
items.
 Personal property floater
 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.
 Another
term for real
estate.
 Real property
 This
type of tax takes a
higher percentage of your
income as your income
increases.
 Progressive tax
 When
a bond is purchased
at a premium, the yield will
be ________ than the
coupon rate.
 Lower
A
tax where the more you
earn the less you pay.
 Regressive
 Establishing
a monetary
fund to cover the cost of
a loss.
 Self-insurance
A
crime where a taxpayer
does not pay their taxes.
 Tax evasion
A
form that lists a
taxpayers total income and
taxes deducted from their
paycheck for a given year.
 W-2
 When
a person dies without
a will.
 Intestate
 The
person chosen to
administer a person’s will.
 Executor
 Who
pays a gift tax?
 The giver
 Gambling
is this type of
risk.
 Speculative
 When
should a taxpayer
itemize?
 When their expenses are
larger than the standard
deduction.
A
financial product where a
the bank buys your house
from you.
 Reverse mortgage
 Another
term for a flat tax.
 Proportional
 The
date your income tax
return must be filed by.
 April 15
 Who
pays realtor’s
commissions?
 The seller, not the buyer.
 When
real property is
transferred from the seller
to the buyer.
 Closing date
 The
highest price a home
will bring on the market.
 Market value
 What
is a canceled check?
 One that has been cashed.
 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
A
term for balancing your
checkbook.
 Reconciling
A
type of credit card that
can only be used at a
specific retailer.
 Retail credit card
 What
does APR stand for?
 Annual percentage rate
 List
one of the 3 major
credit bureaus.
 Experian
 Trans Union
 Equifax
 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
 When
can a person view
their credit report for free?
 Once per year
 When denied credit due to
something on their credit
report
 What
does the FDIC do?
 Provides insurance for
depositors at commercial
banks
 Income
received by
stockholders.
 Dividends
 The
over the counter
stock market.
 NASDAQ
 The
largest stock exchange.
 NYSE
 An
increase in the number
of shares outstanding of a
corporation’s stock.
 Stock split
 When
an investor makes
money on the sale of stock.
 Capital gain
 Elected
by stockholders to
guide a corporation.
 Board of directors
 These
stocks do well when
the economy is growing but
usually do poorly in times
of recession.
 Cyclical stocks
 Another
term for face
value.
 Par value
 Bonds
rating.
 Junk
with low or no
 Bond
backed only by the
general credit standing of
a corporation.
 Debenture
 The
cost of insurance.
 Premium
 The
 Risk
possibility of a loss.
 One
who calculates an
insurance premium.
 Actuary
 To
take measures to lessen
the frequency oR severity of
losses that may occur.
 Reduce the risk
 When
an investor loses
money on the sale of stock.
 Capital loss
 What
is an attractive
nuisance?
 Example: trampoline or
swimming pool
 People
who determine the
value of property destroyed
for insurance companies.
 Claims adjustors
 These
people look for
evidence of destroyed or
damaged property.
 Insurance investigators
 Another
term for selfinsurance.
 Risk assumption
 Insurance
that protects
against loss from death.
 Life insurance.
 Being
paid twice the death
benefit for an accidental
death.
 Double indemnity
A
front-end load.
 Paid when you buy the
mutual fund.
 Agreements
to buy
commodities at specified
prices on specified dates.
 Futures contracts.
 Example
of a progressive
tax.
 Federal income tax.
 Items
such as coins and
antiques are investments
known as_______.
 Collectibles
 An
example of a
regressive tax.
 Sales tax
 As
taxable income
increases, tax rates ____.
 Increases
 The
difference between
market value of property
and what you owe on it.
 Equity
 Another
term for closing
costs.
 Settlement costs
 An
example of a definedbenefits plan.
 pension
A
legal document
authorizing someone to
act on your behalf to
handle personal affairs.
 Power of attorney
 An
IRA that taxes
contributions, but not
money withdrawn at
retirement.
 Roth IRA
 An
apartment with one
large room that serves as
the kitchen, living room,
bedroom, plus a bathroom.
 Efficiency apartment
 What
does MLS stand for?
 Multiple Listing Service
A
legal document that
establishes ownership.
 Title
 The
portion of the purchase
price that the buyer
deposits as evidence of
good faith.
 Earnest money
A
formal document that
expresses interest in
entering into a contract
with someone is a(n)
_______.
 Offer