Chapter 2 Notes
safe deposit box
A secure private storage area maintained at a remote location often a
financial institution's place of business.
A fireproof safe that may be kept in the home.
Reasons for keeping documents
1. paying bills
Chapter 12 Questions
1. What are the four general methods for estimating the amount of life
insurance that the Lawrences need?
The four general methods for estimating the amount of life insurance needed are
the easy method, DINK method, nonworking
Chapter 16 Questions
1. What are the major reasons investors purchase mutual funds as
reported to the Lawrences by the Financial Advisor?
Investors choose mutual funds over individual stocks and bonds for the following
Given her current situation, list some suggestions on how Shelby can
reduce her credit card debt.
Possible solutions include:
Using her savings account as collateral to secure a low interest installment
loan to pay off the cr
Chapter 1 Questions
1. Given her current situation, list various personal financial decisions
that Shelby may be considering at this point in her life.
Shelby may be considering the following decisions:
Should she use up to half of her savings to p
Chapter 19 Questions
1. What types of estate planning activities should the Lawrences consider
at this time?
They should immediately contact an attorney and draw up a formal will. They
should also check all of their insurance policies and work bene
Lets assume the Lawrences will qualify for a 6%, 30-year loan and will make a down
payment of 10%. They are currently paying $300 on a used car auto loan for Shelby
and will pay $220 per month for property taxes and homeowners
Chapter 13 Notes
two-cycle average daily balance method
collects interest over two billing periods when an unpaid balance is begun
bank credit cards
credit cards that are issued by banks, such as MasterCard and Visa
returns a small percentag
Chapter 6 Notes
credit extended by the merchant from whom you have purchased the good or
Truth in Lending Act (TILA)
sets rules regulating credit market; sets limits on your credit-related financial
Equal Credit Opp
Chapter 3 Notes
planning how to get the most from your money
a small, secure storage compartment that you can rent in a bank
personal financial statement
a document that provides information about an individual's current
EXAM 1 part 2
which form would I use if I wanted to deduct my mortgage interest and
take an education credit?
which form does my company send me as a summary of the money I
earned and taxes I paid for the previous year?
my whole salary
EXAM 1 part 3
the option of having your employed deposit your check into your
account on payday
what does ATM stand for?
automated teller machine
what is a PIN
personal identification number
cards used to make purchases; payments are electr
EXAM 1 part 1
a person's _ goals change as s/he learns and grows
_ are things you can't live without
_ are things you would like to live without
the law of _ says consumers will request more of a product at a lesser
price and less of
Important Review Notes
The company or individual that owns an apartment
A legal document signed by both the tenant and the landlord that contains
the terms of the agreement
The location of your apartment is an important safety cons
Chapter 11 Notes
the spreading of risk among many types of investments
a rise in the general level of prices
the use of long-term saving to generate a financial return.
the chance that an investment's val
Exam 2 Study Guide
An account that allows easy and quick access to deposited funds for
transactions are commonly used for day to day money management.
An account for money not intended to be used for current consumption an
What types of financial goals might include an
investment in bonds for the Lawrences?
The Lawrences could have several goals in mind when investing in bonds.
They may want a steady stream of income from the interest payments.