Midterm

Question 1

Current Ratio

Answer 1

STA/STL

Question 2

Debt Ratio

Answer 2

TD/TA

Question 3

STA

Answer 3

Cash, AR,

Question 4

Cash

Answer 4

liquidity

Question 5

Accounts Receivable

Answer 5

Royalties, rent

Question 6

STL

Answer 6

Utilities

Question 7

Insurance

Answer 7

Car, home..

Question 8

Taxes

Answer 8

IRS

Question 9

LTA

Answer 9

car, furniture, jewelry, art collection, house, stocks

Question 10

LTL

Answer 10

Mortgage,auto loan, student loan

Question 11

Fair Market Value

Answer 11

A given value, by the market, to a specific good, at certain time

Question 12

Net Worth /Equity Ratio

Answer 12

A - L

Question 13

Liquidity Ratio

Answer 13

Cash/Monthly Committed

Question 14

Savings Ratio

Answer 14

Monthly Committed/Income

Question 15

Emergency Fund

Answer 15

Available cash that can cover expenses for 3 to 6 month

It should be higher than 1%

Question 16

T-Bills

Answer 16

A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations of $1,000 up to a maximum purchase of $5 million and commonly have maturities of one month (four weeks), three months (13 weeks) or six months (26 weeks).

Read more: http://www.investopedia.com/terms/t/treasurybill.asp#ixzz3cQrRFIko
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Question 17

Bonds

Answer 17

Face value is the money amount the bond will be worth at its maturity,

Question 18

CPI

Answer 18

Consumer Price Index: Benchmark Inflation Guide for the U.S. economy.

Question 19

Shiller P/E Ratio

Answer 19

Prices adjusted to Inflation by dividing Price by Earnings

Question 20

Emergency Fund

Answer 20

It would represent a STA

Question 21

APY

Answer 21

Annual Percentage Yield

Question 22

Home Equity

Answer 22

The Current Market Value less any remaining mortgage payment.

Question 23

How a FICO breaks down?

Answer 23

35% = Payments history, 30% = Amounts owed, 15% = Length of credit history, 10% = Types of credit in use, 10% = New credit

Question 24

Revolving Line of Credit

Answer 24

revolving line of credit is an arrangement made between a company or an individual and a bank to borrow money on a short-term basis to meet temporary cash shortfalls.

Read more: http://www.investopedia.com/video/play/revolving-line-credit/#ixzz3cTppy9Xs
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Question 25

HELOC = Home Equity Line Of Credit

Answer 25

Several factors can lead to strong growth rates in this type of borrowing: Rising home values, which increase the amount of equity available to Prevailing low interest rates coupled with moderate inflation The fact that mortgage interest is often tax-deductible, making it more attractive

Question 26

Swing Trading

Answer 26

A style of trading that attempts to capture gains in a stock within one to four days. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders aren't interested in the fundamental or intrinsic value of stocks, but rather in their price trends and p RTherefore, swing trading is mainly used by at-home and day traders.