Finance and Economics Review

A collection of vocabulary flashcards covering key concepts from the finance and economics lecture notes.

Life Insurance Types

The three types are Term, Whole, and Universal insurance.

Term Life Insurance

Provides coverage for a specific period.

Whole Life Insurance

Offers lifetime coverage and includes a savings component that builds cash value over time.

Universal Life Insurance

Combines flexible premiums and death benefits with a savings element that earns interest.

HMO (Health Maintenance Organization)

A health insurance plan that requires members to choose a primary care physician and get referrals to see specialists.

PPO (Preferred Provider Organization)

A health insurance plan that allows members to see any healthcare provider without a referral, often at a higher premium.

Insurance Premium

The regular payment you make to keep your insurance policy active.

Comprehensive Coverage (Auto Insurance)

Covers damage to your vehicle from events like hail, vandalism, or theft.

Pension

A regular payment made after retirement, typically provided by an employer or the government.

401(k)

A defined-contribution retirement plan provided by an employer.

Roth 401(k)

A retirement plan where contributions are made after taxes, allowing tax-free withdrawals during retirement.

Traditional 401(k)

A retirement plan where contributions reduce taxable income, but withdrawals are taxed during retirement.

Consumer Confidence

A measure of how optimistic or pessimistic consumers are regarding their expected financial situation.

Leading Indicator

An economic factor that changes before the economy starts to follow a particular trend.

Interest Rates

The amount charged by lenders to borrowers for the use of money.

Rent Control

A government regulation that limits the amount landlords can charge for renting out a home.

Predatory Loan

A type of loan characterized by unfair or abusive lending practices, which can trap borrowers in debt.

Market Failure

A situation in which the allocation of goods and services is not efficient.

Click to Cancel Rule

A regulation requiring companies to make it easy for customers to cancel services.

Extended Warranty

An additional service plan offered to consumers that extends the warranty period of a product.

Scam Alert Signs

Indicators that suggest a message may be fraudulent, such as asking for personal information or using scare tactics.

Annual Percentage Rate (APR)

The yearly interest rate charged on borrowed money.

Consumer Protection Agencies

Organizations tasked with ensuring the rights of consumers are upheld and protect against unfair business practices.