STUDYSHEET

1. Overdraft fee/bad check fees- if you write a check for more than is available in your account, it’s called “over drafting”, **both the bank and the company who you wrote the check out to will charge you a fee** 2. Overdraft protection- if there isn’t sufficient funds your bank account, overdraft protection will cover it, but you pay a monthly fee for this service 3. Predatory lenders- give out loans to people with bad credit history ( low credit scored), in turn they charge very high interest rates and are known to have many hidden fees, and charge large late fees 4. Truth in lending act-government requires all banks and loan agencies must provide apr( interest percentage), terms, and penalties 5. Line of credit- total amount available that you can borrow on credit 6. Rule of 72- The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at 4%, than divide 4 into 72 (72/4) and you get 18 7. Retirement: Pension- is a guaranteed retirement fund, paid for by employer, 401k/IRA 8. SEC protects investors and maintains the integrity of the market 9. Inflation- The Federal Reserve tries to control it by increasing/decreasing rates they charge to loan money to banks-they affect the interest rates that is charged by your local bank 10. Capital Gains tax – a tax on All money made by selling stocks, earning dividends, or interest form a bank account or bond that matures (except gov’t bonds) 11. Pawn shop-sell your assets (gold, jewelry, coins) for cash, they may sell it back to you with interest 12. Endorsement-signature required on the back of a check in order for the check to be cashed or deposited 13. Insurance- Car insurance rates based on your driving record(including number of accidents), higher deductible=lower premium, co-payys, deductibles 14. After you use your ATM/Debit card the transaction (the amount taken out and the fee) should be recorded in your check register 15. Credit report- you can request it once a year, If there is a problem with your credit report-you must notify credit reporting agency of that mistake 16. Term Life Insurance is better than whole life insurance because it offers a greater amount of coverage for a specific period of time at a lower cost 17.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Difference between stocks, mutual funds, and bonds 18.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Identify the different types of banks accounts- explain FDIC 19.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Interest rates- how is it figured out, what is based on, why do banks pay you interest for depositing money 20.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Budget categories- explain what they would be-which would be fixed/variable 21.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Credit cards-what should a person know, how much should one pay each month-why pay on time 22.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Retirement- identify different types of accounts-why should you save early 23.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Federal reserve bank- it’s powers, responsibilities and influence on individuals 24.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Diversification-how should one diversify-give examples 25.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Mortgages-what is it based on-how do you choose one 26.<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> Renting an apartment- what should one know before renting an apartment and choosing a roommate, security