Unit 4; Personal Finance Flashcards
Certificate of Deposit (CD)
A certificate issued by a bank to a person depositing money for a specified length of time
Bonds
Dept security that represents a loan from an investor to a borrower.
Stocks
A type of security that represents a share of ownership in a company.
Mutual Funds
An investment program funded by shareholders that trades in diversified holdings and is professionally managed.
Credit Score
A number that estimates how likely you are to repay a loan or credit card on time.
Installment Dept
A type of loan where a borrower receives a lump sum of money and pas it back in fixed amounts over a set period of time.
Revolving Dept
A type of dept that allows you to borrow money, pay it back, and then borrow again.
How much should you always keep in your checking account?
One to two months of living expenses
What is an example of installment dept?
Student loans
What is an example of revolving dept?
Credit cards
What factors influence your credit score?
payment history, amount of dept
How can you improve your credit score?
Pay on time, check report
