midterms personal finance

Time value of money

The time which affects the liquidity of money and its value is called the __________

Annuity

When there are regular payments at regular intervals and each payment is the same amount, that series of cash flows is called an _______.

Rate of compounding

The rate at which time affects value (r) is the rate at which value grows, or the rate at which your value compounds is also called the ________.

Perpetuity

________ is a special kind of annuity that goes on forever.

Expected value

The _______ E(V) of an event is the sum of each possible outcome’s probability multiplied by its result.

Probabilities

________ can be used in financial decisions to measure the expected result of an independent.

Projected

Pro forma or _______ financial statements provide a look at the potential results of f inancial decisions.

Comprehensive

A __________ budget, is a budget covering all aspects of financial life which include a projection of recurring incomes and expenses and of nonrecurring expenditures.

operating, capital

A comprehensive budget consists of an ______ budget and a _______ budget.

Variance

A budget ______ occurs when the actual results of your financial activity differ from your budgeted projections.

progressive, regressive

Taxes may be _______, in which you pay proportionally more taxes the more income you have or ________, such as a sales tax, in which you pay proportionally more taxes the less income you have.

Excise

______ taxes are taxes on specific consumption items such as alcohol, cigarettes, etc.

Sales

A ______ tax or consumption tax, taxes the consumption financed by income.