Study guide 3/4 - ECON

what factors affect credit score?

income,debt, pay bills on time, savings

Can one go into debt with a credit or debit card?

credit

What is paycheck garnishment?

Judge grants judgement to creditor to get portion of debtors

paycheck

What does a credit score measure?

Ability to pay debt

Could you be held responsible for debts made by someone who steals your identity?

yes

What are the three credit bureaus?

Experion, Exquifax, TransUnion

Do you need a credit card to check into a hotel?

No, Debit card will work also

Are teens a major target of credit card companies?

Yes 18-19 year olds

Is co-signing a good idea?

Never a good idea

Putting money away for a period of time with no risk is called?

saving

A yield is a return from?

bond

List examples of collectables.

Baseball cards, coins, stamps, antiques, paintings, ect

This is the ability of turning an investment into money:

liquidity

Money earned from the stock market is called?

dividends

Process of putting money away with the intent to make a profit. There is a risk of loss.

investment

What is diversification?

Spreading investments out to many avenues

Are collectables highly liquid?

No, One must find a buyer for collectibles

What are stocks?

Shares of ownership in companies

Which is safer? A savings account or the stock market?

Savings accounts

How much does the stock market increase on average over the last 50 years?

10-12%

With inflation, a hundred dollars will buy more or less in the future?

Less in future

What is principal when referring to a loan?

Starting amount of loan without interest

What is a loan term?

Length of loan in time

What is interest?

Money paid to lender to account for inflation

This is the term for the yearly interest paid on a credit card?

APR Annual percentage rate

What is a credit report?

Report of the financial worthiness of a borrower

This is the process when a payer misses several payments and interest rates are increased by all lenders.

Universal default

What is the process when those in debt declare they are no longer able to pay their bills?

bankruptcy

How much does one credit report a year cost?

One free each year from each company

What is the term credit limit?

Amount that can be borrowed on a credit card

What is the length of an average home mortgage?

20-30 years

Can student loans and alimony be cancelled during bankruptcy?

no

What is inflation?

Period of time when prices raise