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Stack #425099
Ch. 1
| Question | Answer |
|---|---|
| Business (economic) Cycle | A wavelike pattern of rising and falling economic activity in which the same pattern occurs again and again over time. |
| Compound Interest | Earning of interest on interest. |
| Employee Benefit | Is compensation for employment that does not take the form of wages, salaries, commissions, or other cash payments. |
| Federal Funds Rate | The rate that banks charge one another on overnight loans. |
| Financial Literacy | Is your knowledge of facts, concepts, principles, and technological tools that are fundamental to being smart about money. |
| Financial Success | Is the achievement of financial aspirations that are desired, planned, or attempted. |
| Flexible Spending Account (FSA) | Government-approved, employer-sponsored accounts allow selected employee-paid expenses for medical or dependent care to be paid with employee's pre-tax dollars rather than after-tax income. |
| Future Value | Is the valuation of an asset projected to the end of a particular time period in the future. |
| Inflation | A steady rise in the general level of prices. |
| Interest | The price of money. |
| Marginal Tax Rate | The tax rate at which your last dollar earned is taxed. |
| Opportunity Cost | A decision is the value of the next best alternative that must be forgone. |
| Personal Finance | The study of personal and family resources considered important in achieving financial success; thus it involves how people spend, save, protect, and invest their financial resources. |
| Present Value (Discounted Value) | The current value of an asset (or stream of assets) that will be received in the future. |
| Pre-tax Dollars | Money income that has not been taxed by the government--lowers taxable income, decreases take home pay, and increases effective take home pay because of the reimbursements. |
| Purchasing Power | A measure of the goods and services that one's income will buy. |
| Qualified Retirement Plan aka Tax Sheltered Retirement Plan | Employer sponsored plans that are qualified by the IRS as vehicles in which to deposit tax-sheltered contributions. --401(k), 403(b), 457 |
| Rule of 72 | A formula to figure the number of years it takes to double the principal using compound interest. |
| Tax Sheltered Income | Income that is exempt from income taxes in the current year but which will be subject to taxation in a later tax year. |
| Time Value of Money | It adjusts for the fact that dollars to be received or paid out in the future are not equivalent to those received or paid out today. |
Created by:
namarque
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