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Financial Literacy.
Vocabulary words
| Question | Answer |
|---|---|
| Budget | A future forecast of cash inflows and outflows. |
| Bond | Certificates that work as IOUS - promises to repay money at a future point in time. |
| Current Liability | Debts that must be paid off in a year!! This is something you OWE. |
| Forecast Error | The difference what you forecast to happen and what actually happens. |
| Household Asset | Cars, Houses, and furniture. DOES NOT MAKE MONEY FOR YOU.. |
| Investment | Something you acquire in hopes that it will make money for you . |
| Liability | The amount of debt you owe. |
| Liquid Assets | Cash or anything that can be easily converted into cash. Checks! |
| Long term liability | Debts that will take longer than one year to pay off. Student loans, car loans, home mortgages. |
| Market Value | the market value of something is what it would be worth if you sold it today. |
| Mutual Fund | Allows investors to pool their money in order to invest in a larger variety of financial assets, such as stocks or bonds from MANY DIFFERENT COMPANIES. |
| Net Worth | The difference between your assets and liabilities. VALUE OF TOTAL ASSETS - THE SUM OF YOUR LIABILITIES. |
| Personal Balance Sheet | Tells us our financial position at a point in time. |
| Real Estate | Homes, rental property, farms and other lands. |
| Stock | Certificates that represent fractional ownership of a firm. |