question

Securities Exchange Commission (SEC)

answer

A federal government agency responsible for enforcing the laws concerning the trading of stocks and bonds

question

NASDAQ

answer

An electronic stock-trading system that links brokerage firms

question

return

answer

income earned on an investment

question

stockholder

answer

investors who own a corporation because they own its stock

question

Individual retirement account (IRA)

answer

A retirement savings plan that has special tax benefits but is not employer-sponsored

question

Diversification

answer

Distributing funds among a variety of investments to minimize overall risk

question

Opportunity Costs

answer

The value of your next best alternative whenever you make a choice

question

Central Processing Unit (CPU)

answer

The heart of a computer that converts data into electronic codes and uses these codes to complete calculations, transfer information or images, or create sound

question

Spam

answer

Unwanted advertising distributed through e-mail

question

Random Access Memory (RAM)

answer

The computer's main workspace

question

Depreciation

answer

A decline in a product's value

question

HyperText Markup Language (HTML)

answer

Computer coding system that was developed and used to create documents for display on the Internet

question

technological obsolescence

answer

The process of new technology making products based on old technology out of date

question

Bait and switch

answer

The practice of "baiting" consumers with an advertised but nonexistent bargain and then "switching" them to a more expensive product when they arrive at the store

question

Environmental Protection Agency (EPA)

answer

Federal agency responsible for enforcing laws that protect the environment

question

Federal Trade Commission (FTC)

answer

Federal agency responsible for protecting consumers from unfair or deceptive business practices, such as misleading information in advertising or on product labels

question

full warranty

answer

a written promise that the company will repair or replace a defective product within a specified time period at no charge

question

implied warranty

answer

an unwritten guarantee that the product is of sufficient quality to fulfill the purpose for which it was designed

question

limited warranty

answer

a written warranty that does not meet the standards of a full warranty because of specified limitations

question

Loss leader

answer

a product priced below cost to attract customers to the store

question

trading up

answer

the practice of pressuring consumers to buy a more expensive product than they intended

question

monopoly

answer

a company that has an unfair advantage over competitors in an area of business

question

arbitration

answer

an impartial third-party will hear both sides of a dispute and will make a decision

question

aptitude

answer

a natural talent for learning some skills over others

question

references

answer

people the employer can contact to verify your training, experience, or chharacter

question

severance pay

answer

a sum of money for which an employee is eligible upon termination

question

cover letter

answer

a letter of introduction that you send with your resume to a potential employer

question

downsizing

answer

terminating employees to cut expenses

question

referral (job)

answer

a recommendation of a person for a job given to an employer by someone the employer knows

question

allowance

answer

a number that you can calculate on a Form W-4 that reduces the amount withheld from your pay

question

taxable income

answer

all the wages, tips, and interest on which you pay taxes

question

Federal Insurance Contributions Act (FICA)

answer

Federal law that requires workers and their employers to contribute to Social Security and Medicare

question

Form W-4

answer

A form that you fill out to provide the information your employer needs to determine the proper amount to withhold from your paycheck

question

Form W-2

answer

A summary of your earnings and withholdings for the year for a job

question

income taxes

answer

taxes you pay on most types of income you receive

question

estate tax

answer

tax on property received by the legal heirs when someone dies

question

excise tax

answer

tax included in the price of certain goods and services

question

gift tax

answer

tax paid by the giver of gifts worth more than $12,000

question

payroll taxes

answer

a share of workers' earnings paid to the government by workers and their employees

question

property tax

answer

tax on the value of real estate owned

question

sales tax

answer

tax added to the price of goods and services at the time of purchase

question

fixed expenses

answer

amounts you have already committed to spend

question

flexible expenses

answer

amounts that you can choose to spend or not spend

question

bartering

answer

trading goods and services without using money

question

canceled check

answer

a check with the bank's stamp on it, indicating that it has been paid

question

cashier's check

answer

a bank's own personal check, signed by the bank's cashier. Payment of this check comes from the bank's own funds.

question

certified check

answer

a personal check that has been stamped and signed by a bank officer as a guarantee that your account has the funds to cover the check

question

Federal Deposit Insurance Corporation (FDIC)

answer

A federal government agency that insures deposits in banks

question

inflation

answer

general increase in the average level of prices in a nation's economy

question

third party checks

answer

checks made out to you that you sign over to someone else

question

traveler's checks

answer

checks that you pay for in advance, and if they are lost or stolen, the issuing company replaces them

question

bond

answer

a written promise to pay a debt by a specified date

question

certificate of deposit (CD)

answer

a deposit in a savings instiution that earns a fixed interest rate for a specified period of time

question

dividend

answer

portion of a company's profits paid to the owners

question

money market account

answer

a deposit for which the interest rate changes over time as interest rates in the economy change

question

savings bonds

answer

U.S. government bonds issued for amounts of $50 to $10,000

question

principal (savings)

answer

money on deposit

question

common stock

answer

a voting share of ownership in a corporation for which the dividend varies, as determined by the corporation's board of directors

question

corporate bond

answer

bonds sold by corporations to finance business activites, which usually pay a fixed rate of interest and are paid off after a specific term

question

corporate stock

answer

a unit of ownership in a corporation that you can buy

question

load

answer

a sales fee that you pay when you invest in a mutual fund

question

net income

answer

amount you receive after withholdings are subtracted from your gross pay

question

gross income

answer

amount you earn before taxes are withheld

question

stockbroker

answer

a person who handles the transfer of stocks and bonds between buyer and seller

question

Annual Percentage Rate (APR)

answer

The finance charge calculated as a percentage of the amount borrowed

question

preferred stock

answer

a nonvoting share of ownership in a corporation that pays a fixed dividend

question

credit limit

answer

the maximum account that you may charge on your credit account

question

credit rating

answer

a measure of your creditworthiness, often completed as a numerical score, using the FICO scoring system to analyze your credit history

question

capital

answer

the value of what you own, including savings, investments, and property

question

equity

answer

the difference between the amount owed on a home and the home's value

question

grace period

answer

the time between the billing date and the payment due date when no interest is charged

question

secured loan

answer

a loan backed by something of value pledged to ensure payment

question

unsecured loan

answer

a loan not backed by any collateral

question

lemon laws

answer

laws that require car manufacturers to replace or buy back a car that cannot be fixed after repeated tries, has multiple major defects, or has defects that kept it out of service for 30 days

question

invoice price

answer

amount the dealer paid to buy the car from the manufacturer

question

sticker price

answer

manufacturer's suggested retail price listed on a sticker in a new car's window

question

lease (vehicle)

answer

renting use of a vehicle by making specified payments over a stated period of time

question

appreciation

answer

increase in value over time

question

closing costs

answer

a collection of fees you must pay when you sign mortgage paperwork to cover tasks the lender must do related to your loan

question

compound interest

answer

interest paid on the principal and also on previously earned interest, assuming that the interest is left in the account

question

simple interest

answer

interest paid one time per year at the end of the year on the average balance in the savings account

question

down payment

answer

percentage of the purchase price that the borrower pays up front

question

escrow account

answer

a holding account used by a mortgage lender to accumulate the borrower's funds for taxes and insurance until these payments are due

question

lease (housing)

answer

legal contract that gives you the right to occupy property for a specified period of time as long as you pay the rent and follow the rules specified in the contract

question

landlord

answer

owner of rental property

question

tenant

answer

someone who rents an apartment or other home

question

principal (loan)

answer

the amount borrowed

question

security deposit

answer

money the landlord holds to cover any damages to rental property

question

appraisal

answer

an expert's determination of the value of a piece of property

question

bodily injury liability coverage

answer

Insurance that protects you against financial loss, including the cost of your legal defense, when you are legally responsible for injuring other people in an automobile accident

question

homeowners insurance

answer

Insurance that provides personal property and liability protection for your home

question

liability insurance

answer

Insurance that protects you from losses that you cause others

question

premium

answer

regular payment required to purchase insurance

question

rider

answer

special addition to an insurance policy that covers a specific loss not covered in the standard policy

question

policy

answer

insurance contract

question

mortgage

answer

loan to buy real estate, such as land or a home

question

fee-for-service plan

answer

Type of health insurance in which you pay for health services as you receive them and submit a claim to the insurance company for reimbursement of covered expenses

question

managed care plan

answer

health insurance coverage that you pay for in advance instead of paying for services as you use them

question

beneficiary

answer

person specified in a life insurance policy to receive payment upon the death of the insured person

question

coinsurance

answer

Under fee-for-service health insurance, the portion of covered medical expenses you must pay after meeting the deductible

question

copayment

answer

Under managed care health insurance, the specific amount you pay for particular services, regardless of the cost of those services

question

workers' compensation

answer

Employer-paid insurance program that covers expenses for work-related injuries, illnesses, and death

question

Medicaid

answer

Government-sponsored health insurance designed for people with low incomes or disabilities, regardless of age

question

Medicare

answer

A federal government program that is designed to provide low-cost medical insurance for Americans who are 65 or older or have certain disabilities

question

Medigap

answer

Private health insurance designed to pay for services that Medicare doesn't cover

question

Health maintenance organization (HMO)

answer

Managed care health insurance plan that charges a set amount for each member each year in exchange for providing medical services at no extra cost or for a small copayment, no matter how often you see your doctor

question

COBRA

answer

Federal law that requires your employer to offer to continue your health coverage for up to 18 months after you leave your job, although you must pay the entire premium

question

referral (medical)

answer

A request from your primary care physician for services from a particular specialist

question

multinational corporation (MNC)

answer

a business that is based in one country but has branches or plants in other countries

question

NAFTA

answer

Agreement among the U.S., Canada, and Mexico to gradually eliminate tariffs on most goods produced and sold in North America

question

exchange rate

answer

the price of one currency in terms of another currency

question

depression

answer

a deep, extended decline in a nation's economy

question

expansion

answer

a period of general growth in a nation's economy

question

recession

answer

a period of general decline in a nation's economy

question

quota

answer

a limit on the amount of a product that can be imported

question

tariffs

answer

taxes imposed on imported goods

question

trade deficit

answer

the result when a country spends more on imports than it earns from exports

question

trade surplus

answer

the result when a country earns more from exports than it spends on imports

question

absolute advantage

answer

a country's ability to produce a a product at a lower cost than any other nation

question

comparative advantage

answer

a country's production of a product that makes the most efficient use of the resources it has

question

business cycle

answer

recurring pattern of ups and downs in a nation's business activity

question

fiscal policy

answer

government's taxing and spending decisions

question

monetary policy

answer

Government's efforts to help stabilize the economy by managing interest rates, the availability of loans, and the supply of money

question

unemployment rate

answer

percentage of people who are able and looking for work but don't have jobs

question

collision coverage

answer

insurance that pays for damage to your car caused by colliding with another car or object

question

comprehensive coverage

answer

Insurance that pays for damage to your car caused by something other than a collision, such as damage from storms, vandalism, and theft

question

open enrollment

answer

Specified time each year when employees may sign up for the employer-sponsored health insurance plan

question

permanent life insurance

answer

Life insurance that provides a death benefit plus a savings plan and lasts for the policyholder's lifetime

question

deductible

answer

the amount you pay for a loss before the insurance company pays anything

question

market value

answer

The amount an item is worth now is called its

question

replacement value

answer

The amount it would cost to replace the item that is destroyed is its

question

Types of advertising

answer

Brand, informative, comparative, defensive, persuasive

question

Consumer Bill of Rights

answer

It was created to protect consumers

question

Disability income insurance

answer

Designed to replace your loss income when you can not work because of an accident or illness

question

Equal Credit Opportunity Act

answer

Made it illegal to refuse credit on the basis of race, color, religion, national origin, gender, marital status, or age

question

Equal Employment Opportunity Act

answer

Forbids discrimination by potential employers or their agencies on the basis of race, age, color, religion, gender, or national origin

question

Credit unions

answer

Financial institutions that offer membership to people who share a common bond, such as people in a particular profession, company, church, or labor union

question

Savings and loans

answer

Financial institutions that specialize in lending money to consumers to buy homes

question

Gigabyte

answer

1 billion bytes

question

Megabyte

answer

1 million bytes

question

Kilobyte

answer

1 thousand bytes

question

Law of supply and demand

answer

Demand is the quantity of a good or service that consumers are willing and able to buy at various prices during a given time period. Supply is the quantity of a product that producers are willing and able to make available for sale at various prices over a given time period

question

Product pricing

answer

When an item first comes on the market it is generally higher than when it's been on the market for a while

question

The different economies

answer

Traditional,command, market,mixed

question

Basic types of consumer insurance

answer

Auto, health, home, life

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