Test Terms

Question 1

CPI

Answer 1

Customer price index

Question 2

Nominal interest

Answer 2

Stated interest rate

Question 3

TVM

Answer 3

Time value of money

Question 4

Market basket

Answer 4

Goods that are representative of the normal purchase in the local economy

Question 5

Employment cost index

Answer 5

Monitor inflation by measuring changes in the labor cost for money wages and salary

Question 6

GDP

Answer 6

Gross domestic product

Question 7

Fed fund rate

Answer 7

Interest rate the central bank charges member banks for borrow overnight funds

Question 8

Index of leading economic indicator

Answer 8

11 economic reports such as initial unemployment claims stock market activities etc

Question 9

Secured credit

Answer 9

A loan backed by collateral

Question 10

What kind of credit is a credit card

Answer 10

Unsecured credit

Question 11

Chapter 13 bankruptcy

Answer 11

Bankruptcy where you pay some or all of your debt back

Question 12

How many years does something stay on your credit?

Answer 12

7

Question 13

FSBO

Answer 13

For sale by owner

Question 14

Chapter7 bankruptcy

Answer 14

Bankruptcy where all your debts are discharged without any repayment

Question 15

Adjustable rate

Answer 15

An initial lower rate then that of a fixed rate but that rate is adjusted after a specified time

Question 16

Fixed rate

Answer 16

When a loan is locked in at a certain interest rate for the duration of the loan

Question 17

Another name for discount rate

Answer 17

Interest rate

Question 18

W2

Answer 18

A statement that shows how much you made in a year and any withholding from your check

Question 19

Upside down

Answer 19

When you owe more on a vehicle then it is worth

Question 20

PV

Answer 20

Present value

Question 21

W9

Answer 21

A form file out where you provide your name, addresses and SSN. Used mainly for independent contractor

Question 22

W4

Answer 22

A form filled out where you state your exemptions to determine thee correct amount of tax to be withheld

Question 23

1099

Answer 23

The equivalent of a W2 but for independent contractor

Question 24

FICA

Answer 24

Federal insurance contribute act - a withholding tax

Question 25

Hedging inflation

Answer 25

Preserved the value of money over time

Question 26

A FICO score rate your what?

Answer 26

Credit

Question 27

APR

Answer 27

Annual percentage rate

Question 28

FOMC

Answer 28

Federal open market committee

Question 29

Front loaded interest

Answer 29

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

Question 30

What are the 3 major credit bureaus

Answer 30

Experian, equifax, and trans union

Question 31

CD

Answer 31

Certificate of deposit

Question 32

At what age can you withdraw your IRA and not have a penalty

Answer 32

59.5

Question 33

Collateralize debt

Answer 33

Something tangible that is held as a guarantee against a debt

Question 34

EBIT

Answer 34

Earning before interest and tax

Question 35

Bear market

Answer 35

When a market is decline

Question 36

529plan

Answer 36

An education savings plan where money is taken out of your check tax free

Question 37

Point on a loan

Answer 37

Percentage rate

Question 38

A schedule of financial activity

Answer 38

Budget

Question 39

Bull market

Answer 39

When market go up

Question 40

401k

Answer 40

Saving plan

Question 41

IRA

Answer 41

Individual retirement plan

Question 42

IRS

Answer 42

Internal Revenue Service

Question 43

Term life insurance

Answer 43

Include death benefit only

Question 44

Diversification

Answer 44

Having different type of investment

Question 45

What date do you have to file your personal tax by

Answer 45

April 15

Question 46

Whole life insurance

Answer 46

Cover death benifit and include a interest bearing saving account

Question 47

Sallie Mae

Answer 47

Student loan provider

Question 48

You must file your tax return of you make over?

Answer 48

$500 per year