Final Vocab

Question 1

Resume

Answer 1

A brief summary of job qualifications including education, training, skills and experience

Question 2

Cover Letter

Answer 2

A letter of introduction that you send with your resume to potential employers

Question 3

Common Stock

Answer 3

A voting share of ownership in a corporation

Question 4

Credit Card

Answer 4

Card used to barrow money from the bank

Question 5

401K

Answer 5

Tax-deferred retirement plan offered to the employees by employers

Question 6

Checking Account

Answer 6

Bank account that allows depositors to write checks to make payments

Question 7

Direct Deposit

Answer 7

Depositing an employees pay into the employees bank account electronically instead of using paper paycheck

Question 8

Canceled Checks

Answer 8

A check with the banks stamp on it, indicating that it has been paid

Question 9

Cashiers Check

Answer 9

A banks personal check, signed by the bank’s cashier, payment comes from banks fund

Question 10

Savings Account

Answer 10

Account at a bank, where you deposit money, earn interest, and withdraw funds at anytime

Question 11

Certificate of Deposit (CD)

Answer 11

A deposit in a savings institute that earns a fixed interest rate for a specific period of time

Question 12

Money Marketing Account

Answer 12

A deposit for which the interest rates change overtime as the interest rates in the economy change

Question 13

Government Bonds

Answer 13

A bond that is an IOU of the United States Treasury; considered the safest security in the investment world

Question 14

Savings and Loans

Answer 14

Special Institution that specializes in lending money for people who want to buy homes

Question 15

Credit Unions

Answer 15

Special institution that provides banking to members who share common bond such as certification, church or labor

Question 16

Stocks

Answer 16

The capital raised by a business or corporation through the issue and subscription of shares

Question 17

Mutual Funds

Answer 17

Business that accepts deposits from many people to invest in various ways

Question 18

Diversification

Answer 18

Distributing funds among a variety of investments to minimize risk

Question 19

Inflation

Answer 19

General Increase in average level prices in the nations economy

Question 20

Creditworthiness

Answer 20

Measure of ability and willingness to pay a loan

Question 21

Character

Answer 21

Measure of financial responsibility often based on credit history

Question 22

Capacity

Answer 22

Measure of financial ability to pay a loan

Question 23

Capital

Answer 23

Value of what you own, including savings, investments and property

Question 24

Credit Limit

Answer 24

Max amount you can charge to your credit card

Question 25

Term Life Insurance

Answer 25

Life Insurance that pays death benefit if policy holder dies within specific time, but has no values

Question 26

Mortgage

Answer 26

Loan to buy real estate such as land or a home

Question 27

Down Payment

Answer 27

Percentage of purchase price that borrower pays upfront

Question 28

Insurance

Answer 28

Risk management tool that limits financial loss due to illness, injury, or damage in exchange for premium