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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 |