Exam (elaborations)
Personal Finance WISE Test Graded A+
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Personal Finance WISE Test Graded A+
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Personal Finance WISE Test Graded A+$250,000 - ANSWER-FDIC insures up to how much per account type, per depositor.
$50 - ANSWER-Maximum amount of fraudulent charges you are responsible for.
2-4% - ANSWER-What percent of your outstanding balance do credit card companies
require you to pay each month as your minimum?
21 days - ANSWER-Under the Credit CARD Act, the minimum grace period is:
28% - ANSWER-As a general rule, you should not spend more than what percent on
housing costs?
401(k) - ANSWER-sets aside a portion of your pay, plus (usually) an employer match.
Advantages of Credit - ANSWER-Easy to use, convenient (no cash), buy now/pay later
(don't need to save), establish credit, boost economy, etc.
Annual Percentage Yield - ANSWER-term for the amount of interest that a $100 deposit
would earn after compounding for one year (as defined by law)
APR - ANSWER-Percentage cost of credit on a yearly basis.
Balance Sheet - ANSWER-statement that identifies the items you own, what you owe,
and your net worth
Basic Health Insurance - ANSWER-Surgical, Physician and Hospital Expenses
Budget Variance - ANSWER-Difference between the budgeted amount and the actual
amount spent.
Bull Market - ANSWER-A market where investors are optimistic about the economy and
the potential for stock growth.
Certificate of Deposit - ANSWER-Type of savings account that requires you to keep
your money in the account for a specific period of time.
Check Register - ANSWER-Number, Date, Description, Debit, Check Mark, Credit,
Balance
Co-pay - ANSWER-Specific small dollar amount (about $10-$30) you pay your doctor
each time you visit.
Collision - ANSWER-Insurance you use to repair your car when you hit a light pole.
, Commission - ANSWER-a fee charged by a brokerage firm or investment bank to buy
or sell securities of an investor
Compounding - ANSWER-the process of earning interest on both the principal and any
prior interest earned in your account
Comprehensive - ANSWER-Your car is stolen and then set on fire. What type of
insurance do you need?
Cosigning - ANSWER-Under the Credit CARD Act, how can an underage consumer
(under 21) get a credit card?
Credit CARD Act - ANSWER-Bans unfair rate increases, prevents unfair fee traps,
protects students and young people
Credit Limit - ANSWER-The maximum dollar amount of money the creditor will make
available to you on your credit card
Credit Report - ANSWER-Personal Info, Credit History, Inquiries, Public Records
Credit Union - ANSWER-Type of financial institution that is not-for-profit and only serves
its members (better rates).
Dealer Invoice Price - ANSWER-Price the car dealer paid to purchase the car from the
manufacturer.
Deductible - ANSWER-Is the amount of loss you pay out-of-pocket before the insurance
company pays their portion.
Direct Deposit - ANSWER-Electronic banking service that enables you to have your
paycheck go right into your bank account.
Disadvantages of Credit - ANSWER-Easy to misuse, temptation, buy more than you
can afford, hurt credit, credit limit, interest and fees, etc.
Discretionary Income - ANSWER-Money left after paying expenses.
Diversification - ANSWER-A strategy of investing in a broad range and number of
companies in order to limit the potential investment risk.
Diversification & Professional Management - ANSWER-Advantages of a mutual fund.
Dow Jones Industrial Average - ANSWER-Market index that contains 30 of the largest
companies, yet is a widely used and accurate indicator of stock market performance.
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