Flashcards › Financial Literacy

Money earned or received as a gift. Income Money Mangement tool used to track your money. Budget A trade-off for a financial decision you make. Opportunity Cost A series of regular but equal deposits into savings. Annuity Interest earning interest. Compounding Interest The original amount of money borrowed or saved. Principal A type of asset that can be coverted to cash quickly with out a loss. Liquid Asset The debts you owe. Liabilites When more money is spent than is earned. Deficit Purchasing items on the spur of the moment Impulse Buying The interest rate that the bank charge one another for loans. Federal Funds Rate The Central Bank of the United States The Federal Reserve This type of account gurantees a certain rate of return for a specific time period and are insured. Certificates of Deposit Is a washer/dryer a durable or consumerable good? Durable The price of one share of stock divided by the corporations earnings per share of stock over the last 12 months is know as Price-earnings (PE) ratio The risk that interest rates may go up or down which may affect the cost of borrowing or the profits you earn when you save or invest is referred to as ______ _____ risk. Interest Rate You determine cash flow by subtracting ______ from your ______. Expenses from Income Transmissions Plus stock is selling for $64 a share. Their earnings per share are $4. What is Transmissions Plus Price/earnings (PE). 16 Tyrone purchased a stock for $44 per share. He recieived a dividend of $1.32. What is his yeild on this investment. 3% When you set aside a fixed amount as savings before spending income on other items. "Pay yourself first" What is Lakesha's net worth? She has a $4500 car loan on her car which has a value of $6500, no credit card debt, $500 in her checking account, and $750 in her savings account. $3250 Financial Vocabulary