Entire Financial Lit Review Flashcards
(26 cards)
Define gross domestic product (GDP).
The total value of all goods and services produced in a country
What is inflation?
The rate at which the general level of prices for goods and services rises
What are the three economic phases compared in the GFL course?
- Expansion
- Recession
- Depression
What is the law of supply and demand?
A theory that explains the interaction between the sellers of a resource and the buyers for that resource
Fill in the blank: The federal government plays a role in _______ policy.
fiscal
What are the two types of economics discussed in the course?
- Macroeconomics
- Microeconomics
What are some factors that influence personal financial priorities?
- Emotional influences
- Cultural influences
- Social influences
What is the definition of cost-benefit analysis?
A process for comparing the costs and benefits of a decision
List some sources of income.
- Salary
- Wages
- Commissions
- Tips
What is the difference between gross income and net income?
Gross income is total earnings before taxes and deductions; net income is what remains after taxes and deductions
What does FICA stand for?
Federal Insurance Contributions Act
What are the components of a resume?
- Contact information
- Experience
- Skills
- Accomplishments
- References
What does PYF stand for in personal finance?
Pay Yourself First
Discuss the risks associated with investing.
Potential loss of principal and market volatility
What are some common types of insurance products?
- Automobile
- Health
- Homeowner/renter
- Life
- Disability
What is the significance of a credit score?
It affects loan eligibility and interest rates
What is a common consumer protection law?
Laws that protect consumers from fraud and unfair practices
Identify the three major credit bureaus.
- Equifax
- Experian
- TransUnion
What are the pros and cons of credit cards?
- Pros: Build credit history, rewards
- Cons: High-interest rates, debt accumulation
Fill in the blank: The process of budgeting is based on projected _______ and expenses.
income
What is the purpose of co-signers in loans?
To provide additional assurance to lenders regarding repayment
What is the time value of money?
The idea that money available now is worth more than the same amount in the future due to its potential earning capacity
What are common financial scams to be aware of?
- Phishing
- Ponzi schemes
- Identity theft
What does ROI stand for?
Return on Investment
