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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. |