exam

Question 1

PMI

Answer 1

private mortgage insurance
pay if less than 20%

Question 2

PITI

Answer 2

principle, interest, taxes and insurance

Question 3

what’s a dividend as it relates to owning a share of stock

Answer 3

share of profits

Question 4

if you own stock what do you really own?

Answer 4

part of company

Question 5

2 common stock indexes

Answer 5

dow Jones and s and p 500

Question 6

what does it mean when a bond is callable

Answer 6

a bond paid back early

Question 7

bond

Answer 7

a loan

Question 8

what’s social security

Answer 8

insecure - OASDI
retirement money + other
married can collect 1/2
collect 100% at 67 yrs

Question 9

Traditional IRA

Answer 9

have to wait 59.5 yr to take anything out

Question 10

Roth IRA

Answer 10

can take out what you put in whenever but have to wait for 59.5 to get earnings

Question 11

Brokerage

Answer 11

most liquid
can use your funds whenever and however you want

Question 12

401K

Answer 12

account set up w employer and may get free money

Question 13

Pension

Question 14

Retirement stool

Answer 14

Savings
Social security
Pension

Question 15

dividend yield

Answer 15

annual divd per share / stock price per share

Question 16

beta less than 1

Answer 16

safer

Question 17

% return

Answer 17

gains / og cost

Question 18

62

Answer 18

70%

Question 19

67

Answer 19

full

Question 20

70

Answer 20

124%

Question 21

equity

Answer 21

house value - what I owe = x

x / house value

Question 22

20 % monthly income rule

Answer 22

.20 (income / 12)

Question 23

int rates increase

Answer 23

so worthless so discount

Question 24

annual prop taxes

Answer 24

($ / 2) (mill rate) (1/1000)

Question 25

int semi annually

Answer 25

I = $ (rate) (1/2)

Question 26

simple

Answer 26

I=prt

Question 27

compounded month

Answer 27

f = p ( 1 + (r/n) ) (n times t)

Question 28

$ saved pre tax

Answer 28

trade IRA + 401 k

Question 29

investments grow tax free

Answer 29

Roth IRA, trade ira and 401k

Question 30

contributions withdrawn anytime

Answer 30

brokerage and Roth ira

Question 31

investment earnings withdrawn any time

Answer 31

brokerage

Question 32

withdrawals taxed in future

Answer 32

brokerage, traditional, 401K

Question 33

mutual fund

Answer 33

the pooling together of money from mult ppl into stocks or other things

Question 34

portfolio

Answer 34

collection of assets

Question 35

mortgage

Answer 35

the loan for the house

Question 36

bull market

Answer 36

stock market that's going up

Question 37

why are credit cards good

Answer 37

can buy anything, easy, online, rewards

Question 38

why are credit cards bad

Answer 38

loose it - stolen lots of debt easily credit score is affected

Question 39

whats diversification

Answer 39

investing in mult things - less risk

Question 40

what's compounding

Answer 40

earning interest on intrest

Question 41

PYF

Answer 41

pay yourself first

Question 42

how to avoid paying interest on cc

Answer 42

on time and full

Question 43

credit report

Answer 43

showing credit score, debt, loans, history

Question 44

3 parts to budget

Answer 44

income, savings and expenses