Test Terms Flashcards
CPI
Customer price index
Nominal interest
Stated interest rate
TVM
Time value of money
Market basket
Goods that are representative of the normal purchase in the local economy
Employment cost index
Monitor inflation by measuring changes in the labor cost for money wages and salary
GDP
Gross domestic product
Fed fund rate
Interest rate the central bank charges member banks for borrow overnight funds
Index of leading economic indicator
11 economic reports such as initial unemployment claims stock market activities etc
Secured credit
A loan backed by collateral
What kind of credit is a credit card
Unsecured credit
Chapter 13 bankruptcy
Bankruptcy where you pay some or all of your debt back
How many years does something stay on your credit?
7
FSBO
For sale by owner
Chapter7 bankruptcy
Bankruptcy where all your debts are discharged without any repayment
Adjustable rate
An initial lower rate then that of a fixed rate but that rate is adjusted after a specified time
Fixed rate
When a loan is locked in at a certain interest rate for the duration of the loan
Another name for discount rate
Interest rate
W2
A statement that shows how much you made in a year and any withholding from your check
Upside down
When you owe more on a vehicle then it is worth
PV
Present value
W9
A form file out where you provide your name, addresses and SSN. Used mainly for independent contractor
W4
A form filled out where you state your exemptions to determine thee correct amount of tax to be withheld
1099
The equivalent of a W2 but for independent contractor
FICA
Federal insurance contribute act - a withholding tax
Hedging inflation
Preserved the value of money over time
A FICO score rate your what?
Credit
APR
Annual percentage rate
FOMC
Federal open market committee
Front loaded interest
The first five year or so almost the entire monthly payment is composed of just interest with little reduction to the principal of the loan
What are the 3 major credit bureaus
Experian, equifax, and trans union
CD
Certificate of deposit
At what age can you withdraw your IRA and not have a penalty
59.5
Collateralize debt
Something tangible that is held as a guarantee against a debt
EBIT
Earning before interest and tax
Bear market
When a market is decline
529plan
An education savings plan where money is taken out of your check tax free
Point on a loan
Percentage rate
A schedule of financial activity
Budget
Bull market
When market go up
401k
Saving plan
IRA
Individual retirement plan
IRS
Internal Revenue Service
Term life insurance
Include death benefit only
Diversification
Having different type of investment
What date do you have to file your personal tax by
April 15
Whole life insurance
Cover death benifit and include a interest bearing saving account
Sallie Mae
Student loan provider
You must file your tax return of you make over?
$500 per year
