Unit 3 - Personal Finance

Question 0

want

Answer 0

something that people desire but don’t need to survive

Question 1

whole life insurance

Answer 1

Life insurance that provides coverage your entire lifetime, premiums never increase

Question 2

savings

Answer 2

money deposits placed in a bank, so funds will be available for later use

Question 3

collateral

Answer 3

personal property that a bank can take away from you if you do not repay loan

Question 4

standard value

Answer 4

the use of prices to compare economic value of different goods and services (gives a value or price)

Question 5

credit history

Answer 5

how well a person has managed bills and credit in past

Question 6

investments

Answer 6

money paid into a business with expectations, but no guarantee of future profit

Question 7

interest rates

Answer 7

the percentage of money owed charged for its use

Question 8

simple interest

Answer 8

interests charged only on the original amount of a loan

Question 9

liability coverage

Answer 9

financial protection from being sued

Question 10

collision coverage

Answer 10

insurance coverage for any damage to your own car in an accident

Question 11

certification of deposit (CD)

Answer 11

a deposit you promise to leave in a bank for a specific amount of time

Question 12

FDIC

Answer 12

federal agency that protects bank deposits up to 250,000 per acc; (federal deposit insurance company)

Question 13

credit union

Answer 13

non-profit institution

Question 14

health insurance

Answer 14

pays med bills

Question 15

need

Answer 15

something people must have in order to survive

Question 16

medium of exchange

Answer 16

anything accepted as payment for goods and services

Question 17

bank

Answer 17

stores money

Question 18

variable expenses

Answer 18

amount a person usually spends on wants rather than needs

Question 19

capital gains

Answer 19

profit earned by selling a stock

Question 20

diversification

Answer 20

reducing risk by investing in a variet of assets

Question 21

compound interest

Answer 21

interest charged not only on original amount borrowed but on existing amount owned

Question 22

insurance

Answer 22

financial protection against risks

Question 23

claim

Answer 23

insured person’s request for payment of losses

Question 24

mutual funds

Answer 24

pool of money from many investors used to buy a variety of stocks and bonds

Question 25

bonds

Answer 25

1) type of gov security

2) type of investment which helps finance gov or corporate debt

Question 26

portfolios

Answer 26

variety of stocks and bond owned jointly by investors in a mutual fund

Question 27

property insurance

Answer 27

insurance protects your belongings