Final Exam

Question 1

A retirement savings plan that is sponsored and set up by an employer for its employees; like other retirement plans, there are strict rules as to when the money can be withdrawn without a penalty and strict contribution limits which change from year-to-year.

Answer 1

401K

Question 2

A tax-deferred retirement savings program for employees of educational institutions and some nonprofit organizations.

Answer 2

403b

Question 3

Money that is deducted from your income after taxes have been deducted for the purpose of investing.

Answer 3

After-Tax Investments

Question 4

A person’s property or what is owned.

Answer 4

Assets

Question 5

A person chosen by the policyholder who’s name is on the life insurance policy and who receives the benefits of the policy after the policyholder’s death.

Answer 5

Beneficiary

Question 6

Covers bodily injury if a driver is at fault in a car accident.

Answer 6

Bodily Injury (BI) Liability

Question 7

When the expenses in the revenue or equal, so that there is no profit or loss.

Answer 7

Breakeven Point

Question 8

Money that is used to start or expand a business.

Answer 8

Capital

Question 9

The money that goes in and out of a budget within a fixed period of time.

Answer 9

Cash Flow

Question 10

A certificate that states there is a specific some of money on deposit and guarantees the payment of a fixed interest rate after a certain period of time, usually seven days to 10 years; deposits and withdrawals cannot be made with this.

Answer 10

Certification Of Deposit (CD)

Question 11

A request for payment by a driver involved in an accident two in insurance company that provides automobile insurance for the driver.

Answer 11

Claim

Question 12

A meeting attended by a buyer, seller, attorneys, and a representative of a lending institution for the official sale of property.

Answer 12

Closing

Question 13

Security, such as personal belongings, car or boat title, CD, or stock certificates, that insures a loan will be paid.

Answer 13

Collateral

Question 14

A type of insurance that pays for the repair or replacement of an insured car if it is damaged in a collision with another vehicle or object, or if it overturns, no matter who is at fault. This type of insurance is usually required if there is a loan on the car.

Answer 14

Collision Insurance

Question 15

A method of payment where in employee receives a percentage of the amount of sales produced by that employee.

Answer 15

Commission (as compensation)

Question 16

A percentage of the value of the stock trade.

Answer 16

Commission (as stock trades)

Question 17

Interested that is earned on the money deposited into an account plus previous interest.

Answer 17

Compound Interest

Question 18

A form of home ownership were each unit is individually owned.

Answer 18

Condominium

Question 19

A person Who signed a promissory note along with the bar were and agrees to pay back the loan if the borrower does not.

Answer 19

Cosigner

Question 20

A plastic card that entitles its holder to make purchases and pay for them later.

Answer 20

Credit Card

Question 21

The maximum amount that a person can owe on a credit card at one time.

Answer 21

Credit Line

Question 22

A credit report card that shows how well a user of credit meets financial obligations; these records are used by creditors when they decide to issue credit.

Answer 22

Credit Rating

Question 23

Interested that is compounded daily, but is paid either quarterly or semiannually.

Answer 23

Crediting

Question 24

Organization or person who extends credit to debtors.

Answer 24

Creditor

Question 25

A card that acts like an electronic check in is not a credit or charge card; with each purchase, the amount is deducted from my checking account; purchases may not exceed the balance in the account.

Answer 25

Debit Card

Question 26

Organization or person who uses credit.

Answer 26

Debtor

Question 27

Part of the repair or damages that a driver has to pay before the insurance company pays.

Answer 27

Deductible

Question 28

The quantity that consumers (as a whole) want.

Answer 28

Demand

Question 29

A person reported on a taxpayer's income tax form that a taxpayer supports financially.

Answer 29

Dependent

Question 30

Decrease in value over time.

Answer 30

Depreciate

Question 31

Payroll or other types of checks that are directly and electronically deposited into a bank account.

Answer 31

Direct Deposit

Question 32

A corporation's profit that is split among shareholders.

Answer 32

Dividend

Question 33

Upfront money applied to a purchase that is made using a loan(credit).

Answer 33

Down Payment

Question 34

The earnest money, or good faith deposit made to the seller by an interested buyer to show that the buyer is serious about buying the house.

Answer 34

Earnest Money Deposit

Question 35

A person's ability to earn money now and in the future.

Answer 35

Earning Power

Question 36

Value added options that an employer may choose to offer employees; typically, these are in the form of insurance (health, life, and disability), paid vacation time, paid holiday time, retirement plans, stock ownership plans, and childcare leave.

Answer 36

Employee Benefits

Question 37

A business that has a list of job openings and charges a fee to find jobs for people.

Answer 37

Employment Agency

Question 38

Where the function of supply (what is available to be sold) and demand (the quantity that consumers want to buy) intersect.

Answer 38

Equilibrium

Question 39

The act of legally forcing a tenant to leave a rental property for failure to pay rent or follow the rules and regulations of the lease.

Answer 39

Evict

Question 40

Information included on tax forms that lowers taxes; these include dependence as well as the taxpayer.

Answer 40

Exemption

Question 41

The amount paid when a bond matures.

Answer 41

Fave Value (bond)

Question 42

The amount of coverage that a life insurance policy provides.

Answer 42

Face Value (life insurance)

Question 43

The interest that is charged with buyer when paying for a purchase or service over time.

Answer 43

Finance Charge

Question 44

Expenses that do not change based on the quantity produced, such as furniture or machinery.

Answer 44

Fixed Expenses

Question 45

Act by a bank of taking possession of a home when the homeowner cannot pay the mortgage.

Answer 45

Foreclose

Question 46

The total pay, which is the sum of an employees hourly pay and the overtime pay.

Answer 46

Gross Pay

Question 47

Required by mortgage holders, a type of insurance that covers damage to the home due to fire and other natural disasters; also covers the content of the home in case of theft or vandalism.

Answer 47

Homeowner's Insurance

Question 48

Government agency that collects federal taxes.

Answer 48

IRS

Question 49

A consumer purchases something to which they suddenly were attracted and had no intention of buying.

Answer 49

Impulse Buying

Question 50

A percentage of the money that is in an account that a bank pays on some accounts.

Answer 50

Interest (banking)

Question 51

The percentage rate that is paid by the bank on money that is in some accounts.

Answer 51

Interest Rate

Question 52

The person or people that own a rental house or apartment.

Answer 52

Landlord

Question 53

A written agreement between the landlord and the tenant that details the amount of rent, the length of time the apartment is to be rented, and the rules and regulations that must be followed by the tenant and the landlord.

Answer 53

Lease

Question 54

A type of insurance that covers a person from damages; most states set minimum requirements.

Answer 54

Liability Insurance

Question 55

The negative difference obtained when expenses are subtracted from revenue.

Answer 55

Loss

Question 56

The total value of all of a companies outstanding shares.

Answer 56

Market Cap or Market Capitalization

Question 57

The amount that retailers add on a wholesale price of an item.

Answer 57

Markup

Question 58

I specified date at which interest is paid on a CD.

Answer 58

Maturity

Question 59

The amount of this in employee pays is a set percentage of the entire income with no maximum amounts; the amount paid is split between the employee and the employer.

Answer 59

Medicare Tax

Question 60

A certain amount of money that must be kept in an account as required by that particular bank.

Answer 60

Minimum Balance

Question 61

Amount that is the lowest payment to credit card company will except for the current billing period.

Answer 61

Minimum Payment

Question 62

The loan taken out by people to purchase a house.

Answer 62

Mortgage

Question 63

The difference between a person's assets (what is owned) and that person's liabilities (what is owed).

Answer 63

Net Worth

Question 64

A business that is owned by more than one person; each person is personally liable for the business.

Answer 64

Partnership

Question 65

A type of retirement plan where in employee receives compensation from in employer after retirement.

Answer 65

Pension

Question 66

Grouping of all the stocks that an investor owns.

Answer 66

Portfolio

Question 67

A deposit made to a retirement account that is deducted from wages before taxes, and therefore not taxed; these investments lower a person's current taxable income.

Answer 67

Pre-Tax Dollars

Question 68

Paid for insurance policy.

Answer 68

Premium

Question 69

Current value of a deposit that is made in the present time.

Answer 69

Present Value

Question 70

Balance, or amount of money, in an account, or amount borrowed.

Answer 70

Principle

Question 71

Positive difference obtained when expenses are subtracted from revenue.

Answer 71

Profit

Question 72

Insurance coverage that pays for the damage a driver causes to another person's property.

Answer 72

Property Damage (PD) Liability

Question 73

Taxes that are based on the assessed value of the property owned.

Answer 73

Property Tax

Question 74

A corporation where any person can purchase a share of stock in the corporation.

Answer 74

Public Corporation

Question 75

The time that the average, alert driver, takes to switch from the gas pedal to the brake pedal; usually from approximately 0.75 seconds to 1.5 seconds.

Answer 75

Reaction Time

Question 76

The price for which retailers sell an item.

Answer 76

Retail Price

Question 77

The income a business receipts from selling a product.

Answer 77

Revenue

Question 78

Deposits are taxable, but when the money is withdrawn after having been there for at least 5 years and the saver is at least 59.5 years old, the money in the income earned is tax exempt, or free from all taxes.

Answer 78

Roth IRA

Question 79

Money that employees receive based on sales, for example an author or musician.

Answer 79

Royalty

Question 80

A percentage paid to the government of sales on products or services.

Answer 80

Sales Tax

Question 81

An account in which the banks pay interest for the use of the money deposited in the account.

Answer 81

Savings Account

Question 82

Money given to my landlord from the tenant as protection in the event that the tenant causes damage to the rental property; refunded when the tenant moves out if there's no damage, and can range from up to 1 to 4 months rent.

Answer 82

Security Deposit

Question 83

People who own shares of stock in a corporation.

Answer 83

Shareholders

Question 84

An insurance program available through the United States government that provides income to people retire, become disabled, or who receive survivor's benefits.

Answer 84

Social Security

Question 85

Business that is owned by one person.

Answer 85

Sole Proprietorship

Question 86

Institution where stocks are bought and sold.

Answer 86

Stock Market

Question 87

Person who sell shares of stocks to investors and gives investment advice.

Answer 87

Stockbroker

Question 88

The quantity of an item available to be sold.

Answer 88

Supply

Question 89

Amount of money a worker takes home after deductions.

Answer 89

Take-Home Pay

Question 90

And a taxpayer uses a tax rule to lower the amount of tax due.

Answer 90

Tax Avoidance

Question 91

And amount subtracted from the income tax owed; the most popular are child care and earned income.

Answer 91

Tax Credit

Question 92

When a taxpayer lies about the information on a tax return form in an attempt to avoid paying taxes.

Answer 92

Tax Evasion

Question 93

Earnings that are taxable.

Answer 93

Taxable Income

Question 94

A person who rents a house or apartment.

Answer 94

Tenant

Question 95

A type of insurance that provides protection for the policyholder; this covers the policyholder for a specified period of time, usually 5, 10, or 20 years; after that time, the policy is no longer in effect, unless it is renewed for another term.

Answer 95

Term Life Insurance

Question 96

When a stock is bought or sold.

Answer 96

Trade

Question 97

A savings plan in which the income generated by the account is tax-deferred until it is withdrawn from that account.

Answer 97

Traditional IRA

Question 98

A government program that offers benefits do you eligible employees who, through no fault of their own, have become on employed.

Answer 98

Unemployment Insurance

Question 99

Expenses that depend on the number of items produced, such as raw materials.

Answer 99

Variable Expenses

Question 100

The number of years in employee must participate in the plan before having the right to the investment or part of the investment.

Answer 100

Vested

Question 101

What type of insurance that combines a life insurance with an investment feature; policyholders pay a premium that is divided between the insurance portion and the investment portion.

Answer 101

While Life Insurance

Question 102

The price that manufactures charge the retailer.

Answer 102

Wholesale Price

Question 103

Assistance to employees who are injured while working at their job; a program the is governed by state laws.

Answer 103

Worker's Conpensation

Question 104

When something is but that is not paid for at the time of purchase.

Answer 104

Credit (purchases)

Question 105

The legal claim of property ownership.

Answer 105

Title

Question 106

Coverage that pays for injuries to a driver or passenger caused by a driver who has no insurance or does not have enough insurance to cover the medical losses.

Answer 106

Uninsured/Underinsured Motorist Protection (UMP)