Final Flashcards
Cover letter
A letter of introduction that you send with your resume to a potential employer
Resume
A brief summary of your job application, including education/skills
Common stock
A voting share of ownership in a corporation for which the dividend varies, as determined by the board of directors
401K
A tax deferred retirement plan offered to employees by their employers
Checking account
A bank account that allows depositors to write checks to make payments
Direct deposit
Depositing an employee’s pay into the employee’s bank account electronically
Cancled check
A check that has been paid w/ the banks stamp on it
Cashier’s checks
Banks own personal check signed by cashier. Payment of this check comes from the banks own funds
Savings account
An account where you deposit in a savings institution that earns a fixed interest for a specific period of time
Money market account
A deposit for which the interest rate changes over time as interest rates in the economy change
Savings & loan
A financial institution that specializes in lending money to buy homes
Credit unions
Financial institution that provides banking services to people that share a common bond
Mutual funds
A business that accepts deposits from many people to invest in various ways
Diversification
Distributing funds among a variety of investments to minimize overall risk
Inflation
General increase in the average level of prices in a nation’s economy
Creditworthiness
A measure of your ability and willingness to repay a loan
Character
A measure of your financial responsibility, often based on credit history
Capacity
A measure of financial ability to repay a loan
Capital
The value of what you own, including savings, investments and property
Credit limit
The maximum amount that you may charge on your credit account
Term life insurance
Life insurance that pays a death benefit if the policyholder dies within a specific time period but has no remaining value at this time
Mortgage
Loan to buy real estate, such as land or a home
Down payment
% of the purchase price that the borrower pays up front
Insurance
Risk management tool that limits financial loss due to illness, injury or damage in exchange for a premium
