Chapter 7-9 Flashcards

0
Q

T or F: Learning to be quiet is actually a powerful tool in negotiation

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

T or F: Most of the items at a pawn shop are stolen

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

T or F: In certain circumstances, it is okay to stretch the truth to get a bargain

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a win-win deal

A

Where the buyer and seller are satisfied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The first key to getting a huge bargain is learning to…

A

Negotiate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Proverbs 20:14

A

“It’s no good, it’s no good!” says the buyer, then goes off and boasts about the purchase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Matthew 5:33

A

Moses says keep your oaths, Jesus says “Let your “yes” be yes and your “no” be no.”
- Anything other than this comes from the evil one

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the phrase to get a better deal

A

“It’s not good enough.”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the two tips for refunding

A
  1. Send in the application in on time

2. Follow the instructions carefully

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Integrity

A

Having to do with a person’s honesty and moral attributes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Consignment Shop

A

Retail stores where people sell items and the owner of the shop gets a percentage of the sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Walk-Away Power

A

The ability to walk away from a purchase when negotiating

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Foreclosure

A

Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Auction

A

A public sale in which property or items of merchandise are sold to the highest bidder

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Markup

A

The difference between the wholesale price and retail price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Estate Sale

A

Type of yard sale with more items, usually the entire contents of a household

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Negotiate

A

To bargain for a lower price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

T or F: Using cash gives you more bargaining power than using credit

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does being married to a purchase mean

A

You want it because you can’t live without it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

T or F: With virtually all investments, as the risk goes up, so does the potential return

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

T or F: It’s okay to borrow money if you are going to invest it

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the percentage of inflation in taxes

A

6%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a CD

A

Certificate of Deposit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is a Certificate of Deposit

A

A savings account with a slightly higher interest rate because of a longer savings commitment

24
Q

No more than ___ of your money should go in single stocks

A

10%

25
Q

Bond

A

A debt instrument by which the company owes you money

26
Q

What is the benefit of Roth IRA

A

It is funded after-tax money

27
Q

After tax

A

You’ve already paid tax so you don’t have to pay tax

28
Q

Annuity

A

A savings account sold by an insurance company

29
Q

What is the least liquid consumer investment

A

Real estate

30
Q

What are common employee benefits

A

Retirement plans, insurance, leave (vacation,sick,etc.)

31
Q

401(k)

A

A retirement savings plan offered by a corporation to its employees

32
Q

403(b)

A

Retirement savings that is found in non profit organizations

33
Q

457

A

Available for government employees

34
Q

Portfolio

A

A list of your investments

35
Q

Liquidity

A

Quality of an asset that permits it to be converted quickly into cash without loss of value

36
Q

Share

A

A piece of ownership in a company, mutual fund or other investment

37
Q

Mutual Fund

A

Pool of money managed by an investment company and invested in multiple companies

38
Q

IRA

A

Tax-deferred arrangement for individuals with earned income; individual retirement arrangement

39
Q

Why wouldn’t a single stock be a good place to keep your emergency fund

A

It’s too risky

40
Q

T or F: Diversification lowers risk with investing

A

True

41
Q

When do you need life insurance

A

When other people depend on your income

42
Q

Insurance

A

Protects your money

43
Q

Investment

A

Makes you money

44
Q

What is the purpose of insurance

A

Transfer risk

45
Q

Gap Insurance

A

Covers the difference between what you owe on a car and what the insurance company says it is worth

46
Q

How can a teen get a good deal on insurance

A
  1. Get good grades

2. Take a driver education class

47
Q

What should your minimum auto insurance coverage be

A

$500,000

48
Q

HSA

A

Health Savings Account

49
Q

Copayment

A

An amount of money you pay to help cover a portion of your medical costs

50
Q

You should not buy long-term care insurance until what age

A

60

51
Q

Your coverage should be for ___ of your current income

A

65%

52
Q

What is the purpose of life insurance

A

It replaces your income when you die

53
Q

Premium

A

Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance

54
Q

Deductible

A

Amount you must pay before you begin receiving any benefit from your insurance company

55
Q

Liability

A

The state or quality of being obligated according to law or equity

56
Q

T or F: Raising your deductible may be a good option when it comes to lowering your premium, but it is important to do a break-even analysis before making that decision

A

True

57
Q

What is the phrase for life insurance

A

Buy term, invest the rest