Final Exam Flashcards
A retirement savings plan that is sponsored and set up by an employer for its employees; like other retirement plans, there are strict rules as to when the money can be withdrawn without a penalty and strict contribution limits which change from year-to-year.
401K
A tax-deferred retirement savings program for employees of educational institutions and some nonprofit organizations.
403b
Money that is deducted from your income after taxes have been deducted for the purpose of investing.
After-Tax Investments
A person’s property or what is owned.
Assets
A person chosen by the policyholder who’s name is on the life insurance policy and who receives the benefits of the policy after the policyholder’s death.
Beneficiary
Covers bodily injury if a driver is at fault in a car accident.
Bodily Injury (BI) Liability
When the expenses in the revenue or equal, so that there is no profit or loss.
Breakeven Point
Money that is used to start or expand a business.
Capital
The money that goes in and out of a budget within a fixed period of time.
Cash Flow
A certificate that states there is a specific some of money on deposit and guarantees the payment of a fixed interest rate after a certain period of time, usually seven days to 10 years; deposits and withdrawals cannot be made with this.
Certification Of Deposit (CD)
A request for payment by a driver involved in an accident two in insurance company that provides automobile insurance for the driver.
Claim
A meeting attended by a buyer, seller, attorneys, and a representative of a lending institution for the official sale of property.
Closing
Security, such as personal belongings, car or boat title, CD, or stock certificates, that insures a loan will be paid.
Collateral
A type of insurance that pays for the repair or replacement of an insured car if it is damaged in a collision with another vehicle or object, or if it overturns, no matter who is at fault. This type of insurance is usually required if there is a loan on the car.
Collision Insurance
A method of payment where in employee receives a percentage of the amount of sales produced by that employee.
Commission (as compensation)
A percentage of the value of the stock trade.
Commission (as stock trades)
Interested that is earned on the money deposited into an account plus previous interest.
Compound Interest
A form of home ownership were each unit is individually owned.
Condominium
A person Who signed a promissory note along with the bar were and agrees to pay back the loan if the borrower does not.
Cosigner
A plastic card that entitles its holder to make purchases and pay for them later.
Credit Card
The maximum amount that a person can owe on a credit card at one time.
Credit Line
A credit report card that shows how well a user of credit meets financial obligations; these records are used by creditors when they decide to issue credit.
Credit Rating
Interested that is compounded daily, but is paid either quarterly or semiannually.
Crediting
Organization or person who extends credit to debtors.
Creditor
A card that acts like an electronic check in is not a credit or charge card; with each purchase, the amount is deducted from my checking account; purchases may not exceed the balance in the account.
Debit Card
Organization or person who uses credit.
Debtor
Part of the repair or damages that a driver has to pay before the insurance company pays.
Deductible
The quantity that consumers (as a whole) want.
Demand
A person reported on a taxpayer’s income tax form that a taxpayer supports financially.
Dependent
Decrease in value over time.
Depreciate
Payroll or other types of checks that are directly and electronically deposited into a bank account.
Direct Deposit
A corporation’s profit that is split among shareholders.
Dividend
Upfront money applied to a purchase that is made using a loan(credit).
Down Payment
The earnest money, or good faith deposit made to the seller by an interested buyer to show that the buyer is serious about buying the house.
Earnest Money Deposit
A person’s ability to earn money now and in the future.
Earning Power
Value added options that an employer may choose to offer employees; typically, these are in the form of insurance (health, life, and disability), paid vacation time, paid holiday time, retirement plans, stock ownership plans, and childcare leave.
Employee Benefits
A business that has a list of job openings and charges a fee to find jobs for people.
Employment Agency
Where the function of supply (what is available to be sold) and demand (the quantity that consumers want to buy) intersect.
Equilibrium
The act of legally forcing a tenant to leave a rental property for failure to pay rent or follow the rules and regulations of the lease.
Evict
Information included on tax forms that lowers taxes; these include dependence as well as the taxpayer.
Exemption
The amount paid when a bond matures.
Fave Value (bond)
The amount of coverage that a life insurance policy provides.
Face Value (life insurance)
The interest that is charged with buyer when paying for a purchase or service over time.
Finance Charge
Expenses that do not change based on the quantity produced, such as furniture or machinery.
Fixed Expenses
Act by a bank of taking possession of a home when the homeowner cannot pay the mortgage.
Foreclose
The total pay, which is the sum of an employees hourly pay and the overtime pay.
Gross Pay
Required by mortgage holders, a type of insurance that covers damage to the home due to fire and other natural disasters; also covers the content of the home in case of theft or vandalism.
Homeowner’s Insurance
Government agency that collects federal taxes.
IRS
A consumer purchases something to which they suddenly were attracted and had no intention of buying.
Impulse Buying
A percentage of the money that is in an account that a bank pays on some accounts.
Interest (banking)
The percentage rate that is paid by the bank on money that is in some accounts.
Interest Rate
The person or people that own a rental house or apartment.
Landlord
A written agreement between the landlord and the tenant that details the amount of rent, the length of time the apartment is to be rented, and the rules and regulations that must be followed by the tenant and the landlord.
Lease
A type of insurance that covers a person from damages; most states set minimum requirements.
Liability Insurance
The negative difference obtained when expenses are subtracted from revenue.
Loss
The total value of all of a companies outstanding shares.
Market Cap or Market Capitalization
The amount that retailers add on a wholesale price of an item.
Markup
I specified date at which interest is paid on a CD.
Maturity
The amount of this in employee pays is a set percentage of the entire income with no maximum amounts; the amount paid is split between the employee and the employer.
Medicare Tax
A certain amount of money that must be kept in an account as required by that particular bank.
Minimum Balance
Amount that is the lowest payment to credit card company will except for the current billing period.
Minimum Payment
The loan taken out by people to purchase a house.
Mortgage
The difference between a person’s assets (what is owned) and that person’s liabilities (what is owed).
Net Worth
A business that is owned by more than one person; each person is personally liable for the business.
Partnership
A type of retirement plan where in employee receives compensation from in employer after retirement.
Pension
Grouping of all the stocks that an investor owns.
Portfolio
A deposit made to a retirement account that is deducted from wages before taxes, and therefore not taxed; these investments lower a person’s current taxable income.
Pre-Tax Dollars
Paid for insurance policy.
Premium
Current value of a deposit that is made in the present time.
Present Value
Balance, or amount of money, in an account, or amount borrowed.
Principle
Positive difference obtained when expenses are subtracted from revenue.
Profit
Insurance coverage that pays for the damage a driver causes to another person’s property.
Property Damage (PD) Liability
Taxes that are based on the assessed value of the property owned.
Property Tax
A corporation where any person can purchase a share of stock in the corporation.
Public Corporation
The time that the average, alert driver, takes to switch from the gas pedal to the brake pedal; usually from approximately 0.75 seconds to 1.5 seconds.
Reaction Time
The price for which retailers sell an item.
Retail Price
The income a business receipts from selling a product.
Revenue
Deposits are taxable, but when the money is withdrawn after having been there for at least 5 years and the saver is at least 59.5 years old, the money in the income earned is tax exempt, or free from all taxes.
Roth IRA
Money that employees receive based on sales, for example an author or musician.
Royalty
A percentage paid to the government of sales on products or services.
Sales Tax
An account in which the banks pay interest for the use of the money deposited in the account.
Savings Account
Money given to my landlord from the tenant as protection in the event that the tenant causes damage to the rental property; refunded when the tenant moves out if there’s no damage, and can range from up to 1 to 4 months rent.
Security Deposit
People who own shares of stock in a corporation.
Shareholders
An insurance program available through the United States government that provides income to people retire, become disabled, or who receive survivor’s benefits.
Social Security
Business that is owned by one person.
Sole Proprietorship
Institution where stocks are bought and sold.
Stock Market
Person who sell shares of stocks to investors and gives investment advice.
Stockbroker
The quantity of an item available to be sold.
Supply
Amount of money a worker takes home after deductions.
Take-Home Pay
And a taxpayer uses a tax rule to lower the amount of tax due.
Tax Avoidance
And amount subtracted from the income tax owed; the most popular are child care and earned income.
Tax Credit
When a taxpayer lies about the information on a tax return form in an attempt to avoid paying taxes.
Tax Evasion
Earnings that are taxable.
Taxable Income
A person who rents a house or apartment.
Tenant
A type of insurance that provides protection for the policyholder; this covers the policyholder for a specified period of time, usually 5, 10, or 20 years; after that time, the policy is no longer in effect, unless it is renewed for another term.
Term Life Insurance
When a stock is bought or sold.
Trade
A savings plan in which the income generated by the account is tax-deferred until it is withdrawn from that account.
Traditional IRA
A government program that offers benefits do you eligible employees who, through no fault of their own, have become on employed.
Unemployment Insurance
Expenses that depend on the number of items produced, such as raw materials.
Variable Expenses
The number of years in employee must participate in the plan before having the right to the investment or part of the investment.
Vested
What type of insurance that combines a life insurance with an investment feature; policyholders pay a premium that is divided between the insurance portion and the investment portion.
While Life Insurance
The price that manufactures charge the retailer.
Wholesale Price
Assistance to employees who are injured while working at their job; a program the is governed by state laws.
Worker’s Conpensation
When something is but that is not paid for at the time of purchase.
Credit (purchases)
The legal claim of property ownership.
Title
Coverage that pays for injuries to a driver or passenger caused by a driver who has no insurance or does not have enough insurance to cover the medical losses.
Uninsured/Underinsured Motorist Protection (UMP)
