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Econ 20 Personal Finance & Economics Flashcards | StudBud
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Econ 20 Personal Finance & Economics
Econ 20 Personal Finance & Economics
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Econ Ch. 20 Personal Finance & Economics
Flashcards
40 cards
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Practice quiz
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Host live
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Questions
40
Answers
1
Property put up to secure a loan
collateral
certificate of renewal
credit
promissory note
2
If you are an impulse buyer, you may find that...
you quickly lose interest in things you buy
all of the above
you buy things that make you feel better
you buy things that you do not need
3
Pools of money invested by many people in stocks and bonds
insurance
compound interest
mutual funds
OPM
4
Warranty means that a faulty product is backed up by the manufacturer or seller who may...
reduce, reuse, recycle
repair, replace, or refund.
reuse, reflect, and revisit.
receive, review, and recycle.
5
An excellent FICO credit score is...
800-850
500-699
800-850
700-799
6
Acting on feelings or emotions without thinking about the consequences
long-term investment strategies
comparison shopping
impulse buying
going to medical school
7
Consumer Bill of Rights does NOT include...
right to complain.
right to a safe product.
right for protection against fraud or deceit.
right to a fair price.
8
The Pareto Principle can also be expressed as a ratio such as ...
70:30
90:10
All of the above
80:20
9
Calculating the time it takes for an investment to double in value
Furstenburg's Effect
Sugarman Corrollary
Pareto Principle
Rule of 72
10
Evidence of ownership in a corporation
collateral
bond
stock certificate
dividend
11
Profit earned on an investment
coupons
high-risk debentures
return
debt
12
Money invested for a spefic period of time at a specified interest rate
passbook savings
money market fund
stock certificate
certificate of deposit
13
A careful plan and record of income and expenses is called ____________.
a waste of time
net worth
an expense report
a budget
14
Setting aside income for later use
save
debit
credit
spend
15
When interest is charged on the accumulated, unpaid interest portion of a loan
APR
compound interest
contingent interest
simple interest
16
Looking at different stores or advertisements to evaluate price and availability is called...
consumerism
monopsony
monopoly
comparison shopping
17
The Pure Food & Drug Act and the Fair Packaging & Labeling Act are examples of _________.
smart buying strategies
extended warranties
protecting consumer rights
comparison shopping
18
The money you earn:
liability
deficit
income
revenue shortfall
19
Disposable Income is...
money that is put into "at-risk" investments.
income that remains after taxes have been paid.
income that remains after paying for necessities.
money lost because of gambling.
20
APR = ?
automatic principal reduction
annualized per person revenue
annual percentage rate
automatic price renewal
21
The cost of credit expressed as a percentage of the amount borrowed is the...
surplus
APR (interest per year)
cheese log
credit rating
22
The acronym PITI stands for ...
principal, interest, taxes,
principal, interest, taxes, insurance
probate, interest, taxes, investment
principal, interest, taxes, investment
23
Because CD's require investors to lock up their money for a longer time than regular savings...
banks rarely sell CDs
there is no penalty for cashing them in
CDs pay a higher rate of interest
CDs pay lower rates of interest
24
The value of the highest alternative choice that a consumer did not make is the ____________.
down payment
time deposit
balance of payments
opportunity cost
25
Some companies pay shareholders a _______ at intervals, based on the number of shares they own.
time deposit
return
dividend
bond
26
Inability to pay one's debts
bankruptcy
asset management
debt distribution
solvency
27
Compared to stocks and bonds, mutual funds are generally ____________.
less risky investments
shorter term investments
longer term investments
higher risk investments
28
The fee for using other people's money
debt
debenture
interest
dividend
29
Millions of people have been left in bankruptcy by the ___________.
low annual percentage rate
high down payment requirement
easy availability of credit
lack of collateral
30
Sugarman Corollary to the 80:20 Rule: When eliminating the offending 20%, profit goes up by...
20%
40%
30%
10%
31
What type of insurance does a mortgage lender require when lending money to a home buyer?
liability insurance
health insurance
life insurance
casualty insurance
32
Money spent on everything:
deficit
surplus
expenses
balance
33
A ___________ remains on a person's credit report for seven to ten years.
charge
warranty
deficit
bankruptcy
34
The amount borrowed or the amount lent
APR
principal
interest
collateral
35
Money borrowed to buy a house
foreclosure
lien
probate
mortgage
36
Discretionary Income is...
money remaining after paying taxes.
money lost because of gambling.
money lost because of bad investments.
money remaining after paying for necessities.
37
Recovery method a mortgage lender uses to reposses a home when buyer doesn't make the payments
bankruptcy
escrow
foreclosure
probate
38
To avoid interest charges on a credit card, a consumer must __________.
pay off the full balance each month
make no charges at the end of the month
pay the minimum monthly amount
pay half the monthly balance
39
What is a typical downpayment required by a mortgage lender when a person is buying a home?
50%
20%
10%
30%
40
A bank adds the interest you earn to your ________, the amount that you initially deposited.
loan
mortgage
debit card
principal
