Money Matters Spring Final Review

5.0(1)
studied byStudied by 4 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/44

flashcard set

Earn XP

Description and Tags

Economics

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

45 Terms

1
New cards

Variable Expense

Expenses that vary from month to month, such as groceries, entertainment, and dining out.

2
New cards

Fixed Expense

Expenses that remain constant each month, like rent, mortgage payments, or insurance premiums.

3
New cards

Long-Term Goal

 A desired achievement or outcome that typically requires substantial time and effort to accomplish, such as buying a house or saving for retirement.

4
New cards

Gross Income

Total income earned before deductions such as taxes and retirement contributions are subtracted.

5
New cards

Net Income

 Income remaining after deductions like taxes and other expenses have been subtracted from gross income.

6
New cards

Principal on loan

The original amount of money borrowed or invested, separate from any interest or additional fees.

7
New cards

Certificate of Deposit (CD)

A savings certificate with a fixed maturity date and a specified interest rate, issued by a bank or credit union.

8
New cards

Needs VS Wants

Needs are necessities essential for survival, while wants are desires or preferences that are not necessary for basic living.

9
New cards

5% down payment on a $17,000 car

$850 (5% of $17,000).

10
New cards

15 Year Mortgage VS 30 Year Mortgage

 A 15-year mortgage typically has higher monthly payments but lower overall interest costs compared to a 30-year mortgage.

11
New cards

FSBO: "For Sale By Owner

A method of selling property without the use of a real estate agent.

12
New cards

Housing Percentage Recommendation

 A guideline suggesting the portion of income that should be allocated towards housing costs, usually around 25-30% of gross income.

13
New cards

Term Life Insurance

 Life insurance that provides coverage for a specific term or period of time, typically offering lower premiums compared to whole life insurance.

14
New cards

W4

A tax form completed by employees to indicate their withholding allowances for federal income taxes.

15
New cards

Mutual Fund

An investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

16
New cards

Stock

Ownership in a corporation, representing a claim on part of the company's assets and earnings.

17
New cards

Premium (Insurance)

The amount paid for insurance coverage, typically on a monthly or annual basis.

18
New cards

6 Characteristics of Money

Durability, portability, divisibility, uniformity, limited supply, and acceptability.

19
New cards

What does a stock represent?

Ownership stake in a company, entitling the holder to a portion of the company's assets and profits.

20
New cards

Preferred stock

 A class of stock that typically pays a fixed dividend and has priority over common stock in terms of dividends and asset distribution in case of liquidation.

21
New cards

Dividends

 Payments made by a corporation to its shareholders, usually as a distribution of profits.

22
New cards

IPO

Initial Public Offering - the first sale of a company's stock to the public.

23
New cards

Mutual Fund advantages and disadvantages

Advantages include diversification, professional management, and liquidity; disadvantages may include fees, lack of control, and potential for underperformance.

24
New cards

Diversification

Spreading investments across different assets to reduce risk.

25
New cards

Diversifying between sectors?

Allocating investments across different industries or sectors to minimize the impact of downturns in any single sector.

26
New cards

Speculative investment

 An investment with a high degree of risk, often involving the possibility of significant gains or losses.

27
New cards

Bear Market

A market characterized by declining prices, pessimism, and a general lack of confidence among investors.

28
New cards

Bull Market

A market characterized by rising prices, optimism, and investor confidence.

29
New cards

Blue Chip

 A large, well-established, and financially stable company with a history of reliable performance.

30
New cards

Bond

A fixed-income investment where an investor loans money to an entity (typically a corporation or government) for a defined period at a fixed interest rate.

31
New cards

Capital

Financial assets or the value of assets available for use in producing further assets.

32
New cards

Commodities

Raw materials or primary agricultural products that can be bought and sold, such as gold, oil, or wheat.

33
New cards

Insider Trading

Trading of a public company's stock or other securities based on material, non-public information about the company.

34
New cards

PE Ratio

 Price-to-Earnings Ratio - a measure of a company's current share price relative to its per-share earnings.

35
New cards

Penny Stock

Low-priced, speculative stocks typically traded over-the-counter, often with small market capitalizations and high volatility.

36
New cards

Portfolio

A collection of investments owned by an individual or institution.

37
New cards

Share

A unit of ownership in a company, representing a proportional claim on its assets and earnings.

38
New cards

Speculator

 An investor who takes on higher risk in the hope of making significant short-term gains.

39
New cards

Trading Session

A period during which financial markets are open for trading.

40
New cards

Volume

The number of shares or contracts traded in a security or market during a given period.

41
New cards

Stockbroker

 A licensed professional who buys and sells securities on behalf of clients.

42
New cards

Earnest Money

A deposit made by a buyer to demonstrate serious intent to purchase a property.

43
New cards

Mortgage

A loan used to purchase real estate, with the property itself serving as collateral for the loan.

44
New cards

Deed

A legal document that transfers ownership of real estate from one party to another.

45
New cards

Bitcoin

A digital or cryptocurrency that operates on a decentralized network using blockchain technology.