Unit 5

Question 1

APR

Answer 1

Annual Percentage Rate- the rate you’re charged for borrowing money.

Question 2

Bank Statement

Answer 2

Lists all your deposits, cash withdrawals, check withdrawals, electronic transactions, service charges, and beginning and ending balances.

Question 3

Budget

Answer 3

A spending and saving plan based on your income and expenses.

Question 4

Checking Account

Answer 4

An account that gets interest if you leave your money in it.

Question 5

Compound Interest

Answer 5

More powerful than simple interest. Earning interest on top of interest.

Question 6

Debit Card

Answer 6

Combine the function of checks and atm cards. Money is taken right out of your checking account.

Question 7

Deductions

Answer 7

Expenses subtracted from adjusted gross income.

Question 8

Deposit

Answer 8

Money put into an account.

Question 9

Pay yourself first

Answer 9

Always put money away for yourself before paying for ANYTHING.

Question 10

Endorse

Answer 10

Sign the back of a check in order to deposit or cash the amount specified Bank statement.

Question 11

How to protect yourself from identity theft

Answer 11

shred all cards and documents that give personal information.

Question 12

Fee

Answer 12

Money you pay to the government

Question 13

Gross Pay

Answer 13

The money gotten from wages before taxes are taken out.

Question 14

Income Tax

Answer 14

tax on what you make.

Question 15

Interest

Answer 15

Money paid to the lender by the borrower for allowing them to borrow money.

Question 16

IRA

Answer 16

Individual Retirement Account

Question 17

IRS

Answer 17

Internal Revenue Services

Question 18

Loan

Answer 18

Borrow money from your bank or other lending institution to pay for cars, homes, education, etc.

Question 19

Credit

Answer 19

money that you use to buy homes, cars, and live comfortably.

Question 20

Net Pay

Answer 20

The remaining amount of money left in an employee’s gross pay after been taken out.

Question 21

What makes a successful Budget

Answer 21

a spending plan.

Question 22

W-2

Answer 22

Gotten at the end of the year.

Question 23

W-4

Answer 23

Get when you start a job tells your employer how much to withhold from taxes.

Question 24

Withdraw

Answer 24

When you take money out of your account

Question 25

What percent should you save (at least)

Answer 25

10% of wages/salary

Question 26

SMART goals

Answer 26

Specific, Measurable, Attainable, Relevant, Time base.

Question 27

Credit Line

Answer 27

An arrangment in which a bank or vendor extends a specified amount to a specified borrower for a specified time period.

Question 28

Good vs. bad on credit

Answer 28

it can help you purchase things such as a home although it can get you into debt, a bank may have a fee you have to pay for a certain amount of time that you’re in debt.

Question 29

Collateral

Answer 29

Something of value held by a bank case you don’t pay.

Question 30

4 types of credit

Answer 30

Charge Cards, Credit Cards, Installment Credit, and Loans.

Question 31

Types of saving accounts

Answer 31

Bonds and Stocks

Question 32

Rule of 72

Answer 32

This is a quick way to calculate how long it will take to double your money if it is invested at a particular interest rate. It is all about the power of time. You take the interest rate you expect torn and divide it into 72.

Question 33

Cosigner

Answer 33

An individual other than the borrower who signs a promissory note and thereby assumes equal liability for it.

Question 34

Credit Agreement

Answer 34

contract that binds you (the lender) and the borrower to the credit terms defined.

Question 35

Annual fee

Answer 35

fee you pay yearly for the card.

Question 36

Grace Period

Answer 36

time where you can pay your bill without a charge.

Question 37

Credit scores (what’s a good score, what’s a bad score)

Answer 37

630 or less is bad and 720-850 is excellent.

Question 38

3 credit bureaus

Answer 38

Transunion, Experian, and Equifax

Question 39

How to write a check

Answer 39

draw it

Question 40

Balance/reconcile

Answer 40

Making sure what you have in your check register and what your bank statement says matches up.