Personal Finance Review

High risk means you have the chance of a...

• Low return 
• High return 
• low risk 
• no liquidity

What form do you need to complete your taxes?

• W4
• W2
• Savings and Checking Account Statements 

The more allowances (numbers) you claim on your W4 the 

• More that will be withheld from each paycheck
• Less that will be withheld from each paycheck

Ownership in a company, used to raise funds for a company. Higher risk than some investments, but also the chance of a higher return. 

• Stocks
• Bonds
• Mutual Funds
• CDs

How much you have in checking and savings as well as how much your regular income is.

• Capital
• Collateral 
• Capacity 
• Character 

Why do you have to file for taxes every Spring. 

• You don't
• To figure out if you have to pay more for taxes or if you paid to much
• To show proof that you had a job
• To show changes to your address/life to the government 

Because mutual funds spread your investment around in multiple stocks, bonds, and all assets they are a great example of this term

• diversification
• overdraft
• debt
• beneficiary

Why do investments lead to economic growth?

• They don't
• Money can then be loaned to a business that will in turn invest the money into new plants, etc. 
• The money grows meaning the growth of the economy

This type of retirement account offered by employers to their employees allows them to set aside tax-deferred income.  Sometimes employers will even match the employee contribution up to a certain amount.

• mutual fund
• 401(k)/ 403 (b)
• Checking Account
• savings

This term refers to the original amount of a loan OR the original amount of money invested. 

• Principal
• Interest
• Rebate
• Fixed Rate