Banking

What is CD?

• Divide 72 by the interest rate and hope to earn.

• Interest you earn on interest.

• Low-risk savings tool that can boost the amount you earn in interest.

What happens if you cash it before maturity for CD?

• Building a retirement account.

• Expose the bank to financial penalties on the money invested.

• You pay yourself before spending any.

What is time value of money?

• The sum of money is worth more now then it will be in the future.

• You save it for a very long time to you reach your goal.

• Checking Accounts, Savings accounts, Money Market Deposit accounts, and Certificates of Deposit,

What is Compound Interest?

• State farm and Geico

• Interest associated with the bank account.

• Business of protecting money for others.

What is paying yourself first mean?

• You pay yourself before you spend any money.

• Amount of money loaned by a borrower.

• Altered to effect a fraud.

What are saving tools?

• Checking accounts, Saving accounts, Money Market Deposit Accounts, and Certificates of Deposit.

• JPMorgan, Chase Bank of America, Wells Fargo, Citibank.

What is liquid financial products?

• Public sector banks, Private sector banks, and Foreign banks

• Rule of 72

• Cash, Money Making Instruments, and Marketing securities

What liquid financial products are less liquid?

• Savings accounts

• Tax-advantaged accounts

• Revolving Credit

What is rule of 72?

• Personal Loans, Auto Loans, Student Loans, Mortgage Loans, Payday Loans

• Take a number and divide it by the interest rate you hope to earn.

• Tax anticipation loans

What does repayment of student loans mean?

• As soon as the loan is fully disbursed

• Social insurance programs, welfare, and business subsides

• Mortgage Loans