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Finance 2012
vocab
| Question | Answer |
|---|---|
| The ability of an aset to be converted into cash quickly without loss of value. | liquidity |
| The dat on which an investment becomes due for payment. | maturity date |
| Money paid by the financial institution for the use of the saver's money. | interest |
| A savings account at a credit union. | share account |
| A sum of money in a savings account on which interest is earned. | principal |
| Interest computed on the principle plas accumulated interest. | compound interest |
| The amount of money left over after the bills are paid. | discretionary income |
| A person who buys and sells securities for investors. | stockbroker |
| A combination saving-investment plan in which the money deposited is used to purchase safe, liquid securities. | money market account |
| A deposit that earns a fixed interest rate for a specified length of time. | certificate of deposit |
| Stocks and bonds issued by corporations or by the government. | securities |
| The actual interest rate an account pays per year, with compouning included. | annual percentage yield |
| A bond purchased for less than its maturity value. | discount bond |
| A contract sold by an insurance company that provides the investor a series of regular payments, ususally after retirement. | annuity |
| An investment strategy for spreading the risk amoung different types o investments. | diversification |
| The use of savings to earn a financial return. | investing |
| A rise in the general level of prices. | inflation |
| The chance that an investemnt's value will decrease. | risk |
| An SEC-required summary of a corporations financial results for the year and prospects for the future. | annual report |
| A unit of ownership in a corporation. | stock |
| Professional investent planners who are trained to give investemnt advice. | financial advisor |
| An investment that represents the debt of a company or a government. | bond |
| A professionally managed group of investments bought using a pool of money from many investors. | mutual fund |
| Contracts to buy and sell commodities or stocks for a specified price on a specified dat in the future. | futures |
| The right, but not the obligation, to buy or sell a commodity or stock for a specified price within a specified time period. | option |
| Low-priced stocks of small companies that have no track record. | penny stocks |
| Technique for estimating the number of years required to double your money at a given rate of return. | rule of 72 |
| All that a person owns, less debt owed, at the time of the person's death. | estate |
| A compnay-sponsored retirement plan in which employees recieve, at normal retirement age, a specified amount based on wages earned and number of years of service. | defined-benefit plan |
| A loan against the equity in the borrower's home in which the lender moves tax-free monthly payments to the borrower. | reverse morgage |
| A retirement savings plan that allows individuals to set aside up to $2,000 per year and delay paying tax on the earnings until thata begin wihtdrawing it at age 59 1/2 or later. | individual retirement account |
| A legal document that tells how a decendent wishes his or her property to be distributed after death. | will |
| People who recive property from someone who has died. | heirs |
| A legal document that empowers a trustee to control property for ultimate distribution to a beneficiary. | trust |
| A federal tax on property transferred from deceased people to their heirs. | estate tax |
| A state tax on an heir who recieves property froma deceased person's estate. | inheritance tax |
| A tax-deffered retirement savings plan available to self-employed individuals. | Keogh plan |
| A company-sponsored retirement plan in which employees may choose to contribute part of their salary as a tax-deferred investment. | defined-contribution plan |
| Preparing a plan for transferring property during one's lifetime and at one's death. | estate planning |
| A legal document that makes small changes to a will. | codicil |
| A legal document authorizing someone to act on your behalf. | power of attorney |
| A tax on a gift of money or property, to be paid by the giver, not the receiver, of the gift. | gift tax |
| Money borrowed to buy something now, with the agreement to pay for it later. | credit |
| An agreement to have a service performed now and pay for it later. | service credit |
| Laws setting maximum interest rates that may be charged for loans. | usury laws |
| A legal business that makes high interest loans based on the value of personal possessions pledged as collateral. | pawnbroker |
| A pre-established amount that can be borrowed on demand with no collateral. | line of credit |
| A service to credit customers whereby purchases are not billed for several months. | deferred billing |
| Unlicensed lenders who charge illegally high interest rates. | loan sharks |
| An agreement to lend the borroweer an amount up to a stated limit and to allow borrowing up to that limit again, whenever the balance falls below the limit. | open-ended credit |
| A loan for a specific amount that must be repaid, in full, including all finance charges, by a stated due date. | closed-end credit |
| Property owned that is worth more than the owner's debt. | capital |
| Propery pledged to assure repayment of a loan. | collateral |
| Total dollar amount of all interest and fees you pay for the use of credit. | finance charge |
| The cost of credit expressed as a yearly percentage. | annual percentage rate |
| A person or company hired by a creditor to collect the overdue balance on an account. | debt collector |
| A business that accumulates, stores, and sells credit information to subscribers. | credit bureau |
| A responsible attitude towards living up to agreements, often judged on evidence in the person's credit history. | character |
| A written statement of a consumer's credit history, issued by a credit bureau to its business subscribers. | credit report |
| The financial ability to repay a loan with present income. | capacity |
| A complete record of a person's borrowing and repayment performance. | credit history |
| Treating people differently based on prejudice rather than individual merit. | discrimination |
| A measure of creditworthiness based on an analysis of the consumer's financial history. | credit rating |
| An on-campus building that contains many small rooms that colleges rent to students. | dormitory |
| A building with the same idea as a dorm but you are responsible for cleaning, maintenance, and cooking in exchange for a lower rent. | housing cooperative |
| A living space that is one big room. | studio apartment |
| A living space that has two stories. | townhouse |
| An amount of money paid upfront in order to secure your apartment. | deposit |
| One livien space divided out into tow seperate living spaces. | duplex |
| Individually owned apartment style living spaces. | condminiums |
| A refundable amount of money paid in advance to protect the owner against damage or non-payment. | security deposit |
| A non-refundable amount that you pay for a service. | fee |
| The owner of a rental property. | landlord |
| The person who rents from the landlord. | tenant |
| A written agreement that allows a tenant to use the property for a specified time period and rent. | lease |
| A legal document that establishes ownership. | title |
| The expenses incurred in transferring ownership from buyer to seller in a real estate transaction. | closing costs |
| A real estate marketing service in which agents from many real estate agencies pool their home listings and agreee to share commissions on the sales. | multiple listing service |
| The highest price that a property can sell for. | market value |
| A mortgage on which the interest rate doesn't change during the term of the loan. | fixed-rate mortgage |
| A formal agreement to the terms of an offer, forming a contact between the parties. | acceptance |
| A legal document that transfers titles of real property from one party to another. | deed |
| A formal document that expresses interest in entering into a contract with someone else. | offer |
| The difference between the market value of property and the amount owed on it. | equity |
| An offer in response to another offer. | counter offer |
| A portion of the purchase price that the buyer deposits as evidence of good faith to show that the purchase offer is serious. | earnest money |
| A financial claim on property. | lien |
| A mortgage for which the interest rate changes in response to the movement of interest rates in the economy. | adjustable-rate mortgage |
| A mortgage finance charge paid by the borrower at closing, with each point being equal to 1% of the loan amount. | points |
| Finding out how much money you will be qualified to borrow before making a purchase. | pre-approval |
| What you learn the history of any car from. | vehicle identification number |
| A test to verify that a car meets the minimum clean-air standards. | emissions test |
| The manufacturers suggested retail price on the tag. | sticker price |
| A price somewhere between the sticker price and the invoice price. | fair price |
| High priced, high profit dealer services that add little or no value to the car, but are added to make the dealer more money. | dealer add-ons |
| A written agreement that allows you to use the car for a certain time period and monthly payment. | car lease |
| A car with substantial defects that the manufacturer has been unable to fix. | lemon |
| When a car permanantly loses its color and shine because of a chemical reation with the air. | oxidize |
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cfh13ballet
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