Financial literacy terms and stuff Flashcards
What is a common advantage of using credit?
Ability to obtain needed items now
What is a bank card?
A credit card issued through a credit union.
Time for paying an account without interest charge
Grace period
What does comparing the APR among several credit cards allow?
ability to obtain the lowest interest rate
What is incorrect when endorsing a check?
Sign your name in pencil so that if you change your mind about cashing or depositing the check, you can erase your signature.
A nonprofit financial institution that is owned by its member and organized for their benefit that offers a range of services which may include checking accounts, loans, and credit cards.
Credit Union
An automatic deposit of net pay from an employer to an employee’s designated bank account instead of issuing a paper check.
Direct deposit
The process in which interest is earned on the principal and on any previously earned interest
Compound interest
What is the difference between a credit card and a debit card?
A debit card requires a PIN but a credit card does not.
When you receive your checking account bank statement each month, what items might be on it that you do NOT show in your account register?
Monthly service charges for the checking account.
What will an ATM card allow you to do?
Purchase merchandise at a POS terminal, makes deposits to your account, and withdraw funds from your account.
What will an ATM card NOT allow you to do?
Transfer funds between your accounts.
What must you have to fulfill the identification process of opening an account at a bank?
Social Security Number, Driver’s license, and birth certificate.
What does using a credit card to buy goods or services not force you to do?
Spend future income, specific date to be paid back, or increase your future income.
What are some examples of credit reporting agencies?
Experian, Equifax, and TransUnion
A FICO score is based on what category?
Payment history amounts owned, and types of credit used.
What is a cash advance?
Obtaining a loan against the available credit on your account
What is an example of a revolving credit account?
A Visa Card
What is the largest source of income for the federal government?
Income Taxes
Social Security taxes, medicare taxes, and income taxes are ___ from gross pay.
payroll deductions
What should you do if you have trouble paying your bills?
Call your creditors
Monthly car payment
variable expense
rent payment of an apartment
Fixed expense
The total monies a business has after paying cost of goods sold and its selling, and all administrative and general expenses.
Operating Income
An employee who is paid biweekly (every two weeks) will receive an extra paycheck two months during a fiscal (tax) year.
True
A company sold $100 of merchandise, what does that money mean?
Revenue
anything you own that adds financial value, as opposed to a liability, which is money you owe. (Owning a house)
Asset
Paying your workers is an
Expense
A competition increases, prices will
Usually decrease
A phase marked by a long period of high unemployment, weak consumer sales, business failures is-
Depression
The costs of operating a business are the
expenses
What does it mean to diversify savingS!
is a way to manage risk in your portfolio by investing in a variety of asset classes and in different investments within asset classes.
Amortization
Account
Liquidity
what will most likely take up to 20-30% of your monthly budget?
HOUSING
