FINANCE 1ST TEST

Avoider

Someone that tends to shy away from dealing with financial matters, either due to lack of interest, understanding, or fear of confronting their financial reality.

Balancer

Someone that takes a moderate approach to finances, carefully managing their spending, saving, and investing, to maintain financial health and achieve long-term goals.

Investor

Someone that focuses on using their money to make more money, often by allocating funds into stocks, bonds, real estate, or other investment types.

Money Personalities

The distinct patterns or tendencies in how individuals perceive, interact with, and manage their finances.

Saver

Someone who prioritizes accumulating money, often seeking security and stability through regular saving habits.

Spender

A person who enjoys using their money to purchase products and experiences without much hesitation, and with less concern for saving.

Barter System

Where goods and services are exchanged directly for other goods and services without a medium of exchange, like money being used

Currency

The official form of money in active circulation within a country, including both physical forms like paper bills and coins, as well as the digital or accounting representation of it within the banking system.

Medium of exchange

An instrument that represents a standard and agreed upon value, used to purchase goods and services and to pay debts.

Money

A medium of exchange that facilitates the buying and selling of goods and services in an economy.

Store of value

An asset that maintains its value over time without depreciating significantly.

ACH (Automated Clearing House)

A network for processing electronic financial transactions in batches, enabling efficient and cost-effective direct deposits and payments.

Blockchain

An unchangeable, decentralized, digital ledger distributed across a network of computers.

Bounced Check

A check that cannot be processed due to insufficient funds in the bank account it's drawn from (the payor’s), leading to its rejection by the bank and a return to the issuer (payor).

Cash

Physical forms of money, such as banknotes and coins, that serve as a medium for exchanging goods and services.

Check

A form of payment that is dated and signed by the payor, directing the payor's bank to pay a specific amount of money to the payee the check is written.

Checking Account

A deposit account that allows for easy and frequent cash deposits and withdrawals.

Credit Card

An electronic method of payment allowing the card owner to purchase goods and services on credit.

Cryptography

The study or use of techniques to scramble or hide data, and validate messages and digital signatures, in order to secure digital information.

Debit Card

An electronic method of payment where the funds are deducted directly from the card owner's bank account.

Ditgital wallet

A software-based system that securely stores users' payment information and passwords for numerous payment methods and websites, enabling transactions to be made electronically through a computer or smartphone

EFT (Electronic Funds Transfer)

An electronic transfer of money.

Financial Exchanges

Transactions where goods, services, or assets are traded between parties, usually involving money as a medium of exchange.

Forgery

The act of creating, altering, or imitating objects, documents, or signatures, with the intent to deceive or defraud by passing off the forged item as genuine.

Payor

An individual or entity responsible for making a payment to another party

Payee

The individual or entity that receives a payment from another party

Overdraft

Occurs when an account's balance goes below zero, due to transactions exceeding the available funds, resulting in a negative balance.

Wire transfer

A method for sending funds directly and quickly between bank accounts, often used for immediate and large transactions.

Beneficiary

A person or entity designated to receive the benefits or proceeds from a financial contract, such as a life insurance policy upon the death of the insured, or the occurrence of another specified event.

Car (Auto) Insurance

A type of property insurance that provides financial protection against losses related to owning and operating an automobile

Claim

A formal request made by the insurance policyholder to the insurance company for compensation or reimbursement for a covered loss or event.

Deductible

The amount the policyholder must pay out of pocket before the insurance company begins to cover the remaining costs

Disability Insurance

A type of insurance that provides income replacement to individuals who are unable to work due to a disabling injury or illness

Health Insurance

A type of insurance that covers the cost of an individual's medical and surgical expenses.

Homeowners Insurance

A type of property insurance that provides coverage for a private residence against damages and losses to the home and its contents, as well as liability for accidents that occur on the property

Insurance

A financial arrangement in which a person or entity pays premiums to an insurance company in exchange for coverage or compensation for specified losses or damages.

Insurance Policy

A written contract that outlines the terms and conditions of the insurance coverage.

Liability

An acceptance of risk and/or an obligation or responsibility to pay a certain amount.

Liability Insurance

A type of insurance that provides protection against claims resulting from injuries and damage to people or property for which the insured is legally responsible.

Life Insurance

A type of insurance where the insurer pays a designated beneficiary a sum of money upon the insured person's death.

Premium

The amount of money paid by an individual or entity to an insurance company for coverage under an insurance policy.

Renters Insurance

A type of insurance that provides coverage for a tenant's personal property and liability within a rented residence.