Personal Finance Final Exam Flashcards

They do not affect them, coupon rates are fixed.

APY = (1 + r/n)^n - 1

A = P(1 + r/n)^nt

<p>APY and fees</p> Signup and view all the answers

<p>Mixed</p> Signup and view all the answers

<p>Individual income taxes</p> Signup and view all the answers

<p>Mandatory spending</p> Signup and view all the answers

<p>Discretionary spending</p> Signup and view all the answers

<p>GDP: Gross Domestic Product</p> Signup and view all the answers

<p>Unemployment Rate</p> Signup and view all the answers

<p>CPI: Consumer Price Index</p> Signup and view all the answers

<p>Adjustments to spending and taxes implemented by the government.</p> Signup and view all the answers

<p>An increase in government spending, such as new programs or stimulus checks, or a decrease in taxes.</p> Signup and view all the answers

<p>A decrease in government spending, such as cutting or freezing programs, or an increase in taxes.</p> Signup and view all the answers

<p>Maximum employment and stable prices.</p> Signup and view all the answers

<p>Seven.</p> Signup and view all the answers

<p>The Federal Open Market Committee</p> Signup and view all the answers

<p>Seven members of the Board of Governors, the President of the Federal Reserve Bank of New York, and four other regional bank presidents on a rotating basis.</p> Signup and view all the answers

<p>It earns interest from government securities.</p> Signup and view all the answers

<p>The interest rate charged by the Federal Reserve to banks</p> Signup and view all the answers

<p>Adjusting the IORB to affect the FFR, buying and selling bonds (open market operations), and adjusting the reserve requirement.</p> Signup and view all the answers

<p>Decrease the IORB, buy bonds, and lower the reserve requirement.</p> Signup and view all the answers

<p>Increase the IORB, sell bonds, and raise the reserve requirement.</p> Signup and view all the answers

<p>Banks are only required to keep a percentage of their deposits in reserve at the Federal Reserve, allowing them to lend out the rest, which increases the money supply.</p> Signup and view all the answers

<p>Durability, portability, divisibility, uniformity, limited supply, acceptability.</p> Signup and view all the answers

<p>A share of ownership in a company.</p> Signup and view all the answers

<p>A company with a market capitalization below $2 billion.</p> Signup and view all the answers

<p>Dividend per share / Share price</p> Signup and view all the answers

<p>35% to 50%</p> Signup and view all the answers

<p>Price to Earnings Ratio</p> Signup and view all the answers

<p>An investment that pools money from multiple investors to purchase stocks, bonds, and other securities.</p> Signup and view all the answers

<p>Exchange Traded Fund</p> Signup and view all the answers

<p>Equities (stocks) and debt (bonds).</p> Signup and view all the answers

<p>An annual interest payment on a bond.</p> Signup and view all the answers

<p>$20,000 to $30,000.</p> Signup and view all the answers

<p>COA includes both direct expenses, such as tuition, fees, room and board, and indirect expenses, such as transportation, books, and personal expenses.</p> Signup and view all the answers

<p>The price of college after scholarships and grants are applied.</p> Signup and view all the answers

<p>Parent savings accounts, stocks owned by the student in a brokerage account, UGMA accounts, student high-yield savings accounts, and parent 529 plans for the student.</p> Signup and view all the answers

<p>Change beneficiary, roll into a Roth IRA, or pay down student loans.</p> Signup and view all the answers

<p>You pay taxes and a 10% penalty.</p> Signup and view all the answers

<p>Unsubsidized loans are not based on financial need. They are available to undergraduate, graduate, and professional students, but interest accrues while the student is in school and during grace periods.</p> Signup and view all the answers

<p>PLUS loans require a credit check and are only available to graduate and professional students or to parents of dependent students. They generally have a higher interest rate compared to other federal student loans.</p> Signup and view all the answers

<p>Private student loans are offered by private lenders and have varying terms, including variable or fixed interest rates, and may require a cosigner if the borrower does not have a good credit history.</p> Signup and view all the answers

<p>This plan involves a fixed monthly payment for a period of 10 years and is generally the most affordable option for borrowers because it has the lowest overall cost.</p> Signup and view all the answers

<p>The graduated repayment plan involves a 10-year repayment period with monthly payments that start out low and gradually increase every 2 years. Borrowers may pay more in interest with this plan compared with the standard repayment plan.</p> Signup and view all the answers

<p>Payment amounts for income-driven repayment plans are set at 10% to 20% of your discretionary income, and your loan will be forgiven after 20 to 25 years of payments.</p> Signup and view all the answers

<p>Used to verify the identity and employment eligibility of employees. Both the employee and employer must complete the form before the employee's first day of work.</p> Signup and view all the answers