CM- CH11 Test Review (P2)

Abundance of resources or possessions that you own.

• wealth

• financial plan

• active income

• passive income

Your road map to acquiring, saving, and spending money.

• wealth

• financial plan

• active income

• passive income

Money earned from your work.

• wealth

• financial plan

• active income

• passive income

Income received from an investment.

• wealth

• financial plan

• active income

• passive income

Person’s total assets minus his or her total liabilities.

• wealth

• financial plan

• net worth

• bankrupt

When a person or entity is unable to pay debts as the payments are due.

• wealth

• financial plan

• net worth

• bankrupt

A debt issued by a government or company.

• bond

• maturity date

• face value

• coupon rate

Date on which a bond must be repaid by the entity that issued it.

• bond

• maturity date

• face value

• coupon rate

Amount borrowed; also called the par value.

• bond

• maturity date

• face value

• coupon rate

Interest rate of a bond.

• bond

• maturity date

• face value

• coupon rate