Midterm Ch.6-9 Flashcards
what is a cash advance?
the act of withdrawing cash against your credit limit through the use of your credit card.
what is a “single-purpose credit card” ?
they are cards that can be used only in a specific store or group of stores, or for a specific purpose.
what is a credit bureau?
a agency which gathers information on consumers’ financial history, including payment
history and sells to customers and assigns credit scores.
What is APY?
It is the annual percentage yield (APY) and it is the actual rate of return that will be earned in one year if the interest is compounded.
What is a secured credit card?
a special type of card that requires a cash deposit to insure purchases made with the card.
what is a revolving credit account?
It is a type of credit account that provides a borrower with a maximum limit and allows for varying credit availability.
What is a balloon loan?
It is a loan with low monthly payments, followed by a large final payment to repay the remaining balance at the end of the term.
What is a recourse?
It is a debt that is backed by collateral from the borrower.
What is a variable-rate loan?
It is a type of loan where the interest rate changes with the changes in market interest rates.
What is a marginal tax bracket?
It is the amount of additional tax paid for every additional dollar earned as income.
what is automobile warranty?
It helps pay for replacement parts or specific repairs during the stated warranty period.
What is the maintenance like for the different housing options?
For houses, the maintenance is high since you are the one responsible for buying any renovations, maintenance, or repairs needed. For apartments however, the maintenance is low.
What is Amortization?
Is is the process of writing down the value of either a loan or an intangible asset over time.
What is an opened-end lease?
It is a contract in which the amount owed at the end of the lease is the difference between the residual (projected) value of the property leased and its realized (actual) value.
What is a closed-end lease?
It is a rental agreement that puts no obligation on the lessee (the person making periodic lease payments) to purchase the leased asset at the end of the agreement.
What is the Homeowners association fee?
It is a recurring fee paid by some homeowners to an organization that helps maintain and improve their property and others in the same group.
What is the difference between a Condo and a Co-Op?
If you live in a condominium, you have ownership over your individual unit. If you live in a co-op, you own shares of a company that owns the building. As a co-op owner, you don’t own the unit.
What are property taxes?
It is a tax paid on property owned by an individual or other legal entity, such as a corporation.
What is PITI?
Principal, Interest, Taxes, and Insurance. These are the 4 basics elements of a mortgage payment.
What is a damage deposit?
It is a sum of money paid in relation to a rented item to ensure it is returned in good condition
What is a discount method?
What is ARM?
Adjustable-Rate Mortgages (ARM), refers to a home loan with a variable interest rate.
What are the major type of life insurances?
Term insurance, cash-value insurance, whole life insurance, universal life insurance, and variable life insurance.
what is definition of “face amount” ?
It is the amount of money that is paid out on an insurance policy if the person insured dies or when the policy matures
What is an Actuary?
They are a person who compiles and analyzes statistics and uses them to calculate insurance risks and premiums.
What is Whole Life Insurance?
It is a permanent life plan that provides coverage throughout your entire life.
What is Dental & Eye Insurance used for?
It is used for minor and regular dental, eye examinations, glasses, and contact lenses.
What is a PPO?
It stands for “preferred provider organization” , a type of health plan that contracts with medical providers, such as hospitals and doctors, to create a network of participating providers.
What is a Group Insurance?
A group health insurance plan offers coverage at a lower premium than an individual plan and is available to employees of a company or organization.
What is a HMO?
It stands for “health maintenance organization” a, type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO
What are the differences between HSA’s and FSA’s?
HSAs may offer higher contribution limits and allow you to carry funds forward, but you’re only eligible if you’re enrolled in a HSA-eligible health plan. FSAs have lower contribution limits and generally you can’t carry over funds.
What is the COBRA insurance?
Consolidated Omnibus Budget Reconciliation Act (COBRA) is a health insurance program that allows eligible employees and their dependents the continued benefits of health insurance coverage when an employee loses their job or experiences a reduction of work hours.
What does Long-Term Care Insurance pay for?
Pays nursing home expenses and home health care and covers costs associated with long-term care.
What does the term gatekeeper refer to?
The term gatekeeper describes the person in charge of a patient’s treatment when it’s used in relation to health insurance.
what is Long-term disability insurance?
An insurance which provides income to workers whose earnings are interrupted by lengthy periods of disability.
What is an extended warranty on a car?
It is the coverage for all or some of the cost of certain repairs after the standard factory warranty expires.
what are examples of ADLs’ (Activities of Daily Living)
are essential and routine tasks that most young, healthy individuals can perform without assistance. Eating, Walking, Bathing, etc.
what is workers compensation?
It is insurance that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job.
what is medicare?
It is a federal health insurance for anyone age 65 and older, and some people under 65 with certain disabilities or conditions
What is a Co-Payment?
It is the percentage of the claim that the insured agrees to pay from his/her pocket irrespective of the claim amount
what is a guaranteed Insurability?
It is an add-on to a life insurance policy that guarantees the policyholder will be insured even if they develop a serious illness while covered by a life insurance policy.
what is a rating agency?
It is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest
What are deductibles in insurance?
the amount of money that the insured person must pay before their insurance policy starts paying for covered expenses.
What is a holdback?
It is a sum of money withheld under certain conditions.
what is the Truth in lending Act?
It is a requirement in which lenders to provide you with loan cost information so that you can comparison shop for certain types of loans.
What are the two types of bankruptcy
Ch. 7 & Ch.13
what is a merchant discount fee?
It is a fee charged to a business by the company that processes its debit and credit card transactions.
