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BYUI Money Management FCS - 340 EXAM 2 Questions and answers
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BYUI Money Management FCS - 340 EXAM 2 Questions and answers
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BYUI Money Management FCS - 340EXAM 2 Questions and answers
Monetary Assets - answer - financial resources that are legal tender
(cash) or can be converted to legal tender very quickly
- ex: currency in wallet, coins in a pickle jar, checkings/savings accounts,
certificates of deposit, money market accounts
Goals of effective cash management - answer - convenience
- cost
- consideration
- security
- gain
Convenience - answer easy-to-access services without travel or hassle
Cost - answer you are not charged fees and/or penalties
consideration - answer you can get personal help when you need it
security - answer low risk of losing any money
gain - answer you are paid some interest from those who use your cash
liquidity - answer refers to how quickly and easily you can access your
money
emergency fund - answer -liquid financial resources to meet unexpected
and immediate needs
- should total 3-6 months of living expenses (or even income)
,Federal Deposit Insurance Corporation (FDIC) - answer - government
agency which deposits at most commercial banks up to $250,000 per
depositor... $500,000 for joint depositors
Checking Accounts - answer
National Credit Union Administration - answer
Savigns Accounts - answer
Credit Bureaus - answer Credit bureaus, also called credit agencies or
credit reporting agencies, are companies that collect credit
information about individuals. They then calculate a credit score for each
individual based on this information.
Note that credit bureaus are private, for- profit businesses-they are not
part of the government, though they
are overseen by various government agencies. In the United States, the
three major credit bureaus are
Equifax, Experian, and TransUnion.
Payday Loan - answer a relatively small amount of money lent at a high
rate of interest on the agreement that it will be repaid when the borrower
receives their next paycheck.
Debt consolidation - answer The act of combining all debts into one
monthly payment, typically extending the terms and the length of time
required to repay the debt.
Tracking Cash Flow - answer
Credit - answer An arrangement to receive cash, goods, or services now
and pay for them in the future.
, Interest - answer A sum paid or charged for the use of money or for
borrowing money
Refinance - answer To revise a loan agreement to make the
terms of payment more suitable to a
borrower's present income and ability to
repay.
PITI - answer Principal, Interest, Taxes, Insurance
Home Equity - answer The current market value of a home minus the
remaining mortgage balance
Mortgage - answer a specific type of loan that is used to buy real estate
One Percent - answer 1 point when getting a mortgage = 1% of the
property value that you can pay to have a lower payment on your loan
Credit card - answer a small plastic card issued by a bank, business, etc.,
allowing the holder to purchase goods or services on credit.
Monetary assets - answer Assets that can be quickly and easily converted
into cash
Certificate of Deposits (CD's) - answer A savings alternative in which
money is left on deposit for a stated period of time to earn a specific rate
of return.
Liquidity - answer the ease with which an asset can be converted into
cash
Money Market account - answer a savings account that requires a
minimum balance and earns interest that varies from month to month
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