Money Matters – Exam Review —Semester 1

What are potential employers looking for when you apply for a job? ____Specific education and experience______.

When you are looking for a used car, _Kelley Blue Book______will help you best determine the value.

What does diversify mean and why is it important in regards to the stock market? ____Buy stocks in different sectors to reduce risk.

______

When you borrowed $50 from your rich cousin, and then had to pay her back $60, the original $50 is called ______principal______

In a job interview, it is best to broach the topic of salary when? __end______

Without health insurance, a routine checkup at the doctor's office can cost you ___hundreds of dollars____

Define "Cold call” __A call to the company to ask if they are hiring.______

What is aptitude? _____Skills and abilities______

How long does it take to get an associate degree? Bachelor degree?Master degree? Doctorate degree?

______Associate—2 Bachelor—4 Maters—6 Doctorate 8+______

What is a deductible? ______The amount of loss you pay______

If you crashed your car into a house, which type of insurance would cover the damage? ______Auto______

What is Life insurance? What should it be used for? _burial expenses and provide for dependents_____

What is the difference in interest and payments between a 15-year mortgage and a 30-year mortgage? _____15 year—pay less interest over the life of the loan_______

When you are buying a house, what are the debt ratios they use to calculate how much house payment you

can afford? How much total debt you can afford? ___28% gross 36% total debt______

What is an adjustable rate mortgage? ___Interest can go up or down every few years______

What is the official retirement age, according to the US government? __67_______

When should you begin saving for retirement? Why? __As soon as you enter the work force______

What contributions are tax deductible? ___Charity and traditional IRA______

What is the consequence for early withdrawal of funds from your IRA? _20% or more penalty______

What is inflation? ____Increasing price levels______

What is a W2 form? A W4 form? _____w2—lists income w4—withholding allowance______

Why is it important to have a personal investing plan? ____so your money can double and grow so you can retire

What is a bear market? What is a bull market? ___Bear—falling prices Bull-rising stock prices______

What is risk in investments mean? How much risk can you tolerate in your investment portfolio when you are in your 20’s, 30’s 40’s? ______Risk—more likely to lose money older people should take less risk______

What is the Dow Jones Industrial Average? ______A collection of 30 stocks______

What are US savings bonds? When do they mature? How much are they worth at maturity? ______paper sold by govt worth face value at maturity______

What guaranteed growth do you have in your investments? __NONE______

What is a Money market account? Why is it important to have one? ______A collection of highly liquid short term investments that pay a higher interest than a regular savings account______

List the 5 types of investment you can own from lowest paying interest to highest paying interest.

______Savings, Money Market, bonds, Mutual funds, stocks______

Why are financial goals important? __Helps you not waste money______

What is the FDIC? What is its objective? __Govt insurance program to guarantee you money in a bank___

What taxes are taken out of your paycheck? Who do the taxes go to? __State federal and govt witholding taxes SS

What information do you need to file your taxes? _w2 and 1099______

How much of your taxes go to each of the following: Social Security _20%______National Defense ___20%____

net interest ___6%______

What information is on the W4 form? ___number of withholding allowance______

What is a good password? ____a combination of letters and numbers______

On average, how much sleep is ideal for most adults? ____7-8 hours______

What information is used to compile your credit history? __payment history savings, credit cards and expenses__

Your credit history tells the history of your ___borrowing and repayment performance______

A business that gives you a loan is a ____creditor______

You forgot to pay last month's credit card bill. Your creditor will probably add ___late fees and finance charges

You can best compare credit card offers by looking at __APR and fees______

What is an overdraft fee ______fee charged by the bank if you go under the minimum balance______

List two examples of primary needs? Secondary needs? Food clothes car and computer______

What is the Better Business Bureau? __A govt agency that records business complaints______

When do you engage in a contract? ___every time you make a purchase______

What is a rebate? What is a discount? ____a rebate requires action after the sale______

What is a loan? What is a lease? ____loan—borrowing money lease—borrowing something______

What is the difference between purchasing and leasing? Why? ____purchasing—higher payment______

How much of your take-home paycheck should be budgeted for base rent? __30%______