STUDY STUDY STUDY STUDY

Question 1

financial plan

Answer 1

an orderly program for spending, saving, and investing the money you can

Question 2

budget

Answer 2

organization plan whereby you match expected income to your expected expenses

Question 3

disposable income

Answer 3

the money you have left to spend or save after taxes have been paid

Question 4

discretionary income

Answer 4

: the money you have left to spend after you pay for necessities; house, car, utilities

Question 5

fixed expenses

Answer 5

expenses that are relatively constant (house payment)

Question 6

variable expenses

Answer 6

will change according to needs and short term goals

Question 7

assets

Answer 7

list of items that a person owns

Question 8

liabilities

Answer 8

list of items that a person owes

Question 9

contracts

Answer 9

legally enforceable agreement between two or more parties to do or not to do something

Question 10

elements of enforcable contracts

Answer 10

agreement
consideration
contractual capacity
legality
genuineness of assent
legal front

Question 11

agreement

Answer 11

mutual assent

Question 12

consideration

Answer 12

price involved

Question 13

contractual capacity

Answer 13

competence, sane, intelligent

Question 14

legallity

Answer 14

distribute drugs

Question 15

legal form

Answer 15

written out property

Question 16

checking account

Answer 16

: A banking service wherein money is deposited into an account and checks can be written to withdraw money from the account as needed

Question 17

over draft

Answer 17

A check that cannot be covered be covered by the funds in your account

Question 18

writing checks

Answer 18

Always use a pen
Write legibly
Sign your name
Avoid mistakes
Make sure you have enough money

Question 19

certified checks

Answer 19

a personal check that the bank guarantees or certifies to be good

Question 20

casher’s check

Answer 20

a check written by a bank on its owns funds

Question 21

debit cards

Answer 21

allow immediate deductions from a checking account

Question 22

bank reconcilliation

Answer 22

the process of matching your checkbook register with the bank statement

Question 23

investment options

Answer 23

stocks
bonds
government savings bond
mutual funds
real estate

Question 24

stocks

Answer 24

ownership in a corporations

Question 25

bonds

Answer 25

debt obligations of corporations

Question 26

government savings bond

Answer 26

buy a $50 bond and receive $100 at maturity

Question 27

mutual funds

Answer 27

buy shares in a large, professionally managed company, who invests in many different stocks and bonds

Question 28

real estate

Answer 28

houses and land

Question 29

where are stocks traded?

Answer 29

stock market exchange
bull market
bear market

Question 30

stock market exchange

Answer 30

(auction market) NASDAQ, S&P, 500, NYSE

Question 31

bull market

Answer 31

rising stock prices and a general feeling of optimism

Question 32

bear market

Answer 32

investors are pessimistic about the overall economy and start to sell stocks