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40 Cards in this Set
- Front
- Back
A large sum of cash you pay up front when you purchase a home is called a(n) |
down payment. |
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Cash allowances awarded to students to help pay education costs are called |
scholarships.
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Loan consoldiation |
means that all of an individual's student loans are combined into one large loan, resulting in monthly payment. |
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Grants |
are forms of educational funding that do not have to be repaid and usually do not require students to maintain certain standards. |
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The amount of money you deposit into a savings account is called the |
principal. |
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Credit unions |
are not-for-profit organizations established by groups of people who pool their money. |
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A(n) brokerage firm |
is a company that buys and sells different types of stocks and bonds. |
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Liquidity |
is a measure of how quickly you can get your cash without loss of value. |
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The date on which an investment becomes due for payment is the |
maturity date. |
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Safety of principal |
means that you are guaranteed not to loose your savings deposit, even if the bank or other financial institution fails and goes out of business. |
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The general rise of prices is called |
inflation. |
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The Rule of 72 is a technique for estimating the number of years required to |
double your money at a given rate of return. |
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A collection of investments is called a(n) |
portfolio. |
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Speculative investing |
happens when you make bold and high-risk investment choices.
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The spreading of risk among many types of investment is called |
diversification. |
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Property risk |
is associated with owning the stock of just one organization. |
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The chance that inflation will rise faster than the return on your investment is called |
interest rate risk. |
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A mutual fund |
is the pooling of money from many investors to buy a large selection of securities. |
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Penny stocks |
are low-priced stocks of small companies that have no track record. |
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Dividends |
are money paid to stockholders from the corporation's earnings. |
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A type of stock that pays a fixed dividend but has no voting rights is a |
preferred stock. |
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A proxy |
is a stockholder's written authorization to transfer his or her voting rights to someone else. |
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Growth stocks |
are stocks in corporations that reinvest their profits into the business so it can grow. |
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The par value |
of a stock is an assigned dollar value given to each share of stock. |
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A stock index |
is a benchmark that investors use to judge the performances of their investments. |
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When securities are bought and sold through brokers but not through a stock exchange, the transaction is |
over-the-counter (OTC) |
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A bull market |
is a prolonged period of rising stock prices and a general feeling of investor optimism. |
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Short selling |
is selling stock borrowed from a broker that must be replaced at a later time. |
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A stock split |
is an increase in the number of outstanding shares of a company's stock. |
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The use of someone else's money, borrowed now with the agreement to pay it back later, is called |
credit. |
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A person who borrows money from another is called a(n) |
debtor. |
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A creditor |
is a person or business that loans money to others. |
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Capital |
is the value of property you possess after deducting your debts. |
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Property pledged to assure repayment of a loan is called |
collateral. |
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With a secured loan, |
the good you purchase with the loan serves as collateral for the money located. |
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With open-end credit, |
a borrower can use credit up to a stated limit. |
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The grace period |
is a timeframe within which you may pay your current credit balance in full and incur no credit charges. |
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A finance company |
is an organization that makes high-risk consumer loans. |
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A usury law |
is a state law that sets a maximum interest rate that may be charged for consumer loans. |
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An annual report |
is a summary of a corporation's financial results for the year and its prospects for the future. |