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PF Final
Final exam flash cards
Question | Answer |
---|---|
Satellite Decisions | When a major decision leads to several smaller decisions |
Routine | Are made on a day-to-day basis |
Major | Have long-term effects on a person’s life |
What is a decision? | A choice that is made about things that affects a person’s life. |
There are two types of decisions | Routine and Major |
types of cash managment | Checking account, Savings account, Money market, Certificates of deposit, savings bond |
Emergencies | 3 to 6months worth of savings |
1-, 20, 70 | Invest 10%, save 20%, spend 70% |
What are stocks? | Ownership in a public trade company |
Primary markets | Where stocks are created |
Depository Institutions | business which offer multiple services in banking and finance. |
Federal Reserve Bank | Is part of the central banking system in the U.S. |
Commercial Banks | Usually the largest depository institutions |
Credit Unions | Non-profit cooperative depository institution |
Credit Card | A card used used to make a purchase now and repay later |
Credit | is the amount of money or something of value that is loaned on trust with the expectation it will be repaid later to lenders. |
Installment loan | Borrow cash to be repaid by a specific date |
Student loan | Borrow to pay tuition |
Grace period | length of time you have before you start accumulating interest |
Over-the-limit fee | spending more than your credit limit. Fee that is applied. |
Rent | The cost of using someone else's property |
Tenant | Person who rents the property |
Landlord | Owner of rental property |
Home Ownership | Buyer has purchased a housing unit of property |
Down payment | A home loan in which the real estate is the collateral |