Financial Concepts Flashcards

Front

Sources of income

Back

Wages, rentals, interest, capital, profits, investments, entrepreneurship

Front

Exemption (allowance)

Back

Allowance is used to reduce the amount of taxed income

Front

CD (Certificate of Deposit)

Back

A time deposit offered at financial institutions; penalty if cashed before maturity

Front

Credit union advantage

Back

Lower interest rates on loans; member-owned cooperative financial institution

Front

Liquid Financial Products vs. Less Liquid Products

Back

Savings and checking accounts are most liquid, while certificates of deposit and money market accounts are less liquid.

Front

Tax Anticipation Loans

Back

A refund anticipation loan (RAL) is a short-term consumer loan secured by a taxpayer’s expected tax refund.

Front

Credit Card Cash Advances

Back

Provided by credit card companies – withdraw cash with a credit card – you pay a higher interest rate.

Front

Credit Reports

Back

A number representing the creditworthiness of a person, used by lenders to evaluate potential risk.

Front

Characteristics of predatory loans

Back

Loans to poor credit risk customers with high interest rates.

Front

Health Insurance and Co-pay

Back

Insurance against medical expenses. Co-pay is a flat dollar amount for a covered medical service.