Financial Literacy Vocab 1

The maximum amount an insurance company will pay if you file a claim

Taxes are due which day of the year?

The ease with which an asset can be converted to cash without serious loss.

Budget billing is used for what?

A rise in value or price.

If you make more than $2,000 in a year you must file taxes.

How must value does a new car lose when you drive it off the lot?

Expenses that do not change month to month

Bank account that does not have a fee for withdrawals, extremely common account holding

Diversification refers to:

 An investment security that is actually a diversified portfolio of equities, bonds, or other securities.

Employer deductions from employees’ earnings to pay employees’ taxes.

A formal agreement where you lend money to a borrower who can use that money for a set period of time:

Institution that typically has the lowest interest rates for mortgages, car loans, etc

The rule of 72

The movement of money you receive and money you spend