Wise Financial Literacy Vocab

Wise Financial Literacy Vocab Job - answera position of employment with specific duties and compensation lease - answera written contract specifying the terms for the use of an asset and the legal responsibilities of both parties to the agreement, such as a landlord and tenant liability - answeran actual or potential financial obligation liquidity - answerthe quality of an asset that permits it to be converted quickly into cash without loss of value. For example, a mutual fund is more liquid than real estate. living will - answera document that contains the signer's desires for specific medical treatment in case the person is unable to make medical decisions; also known as a health care directive loan shark - answera person who lends money at an exorbitant rate of interest medicaid - answera program, financed by state and federal government tax revenues to pay specified health care costs care for those who cannot afford them medicare - answera federal government program, financed by deductions from wages, that pays for certain health care expenses for older citizens. The social Security Administration manages the program mortgage - answera long-term loan to buy real estate, that is, land and the structures on it mutual fund - answeran investment tool that pools the money of many shareholders and invests it in a diversified portfolio of securities, such as stocks, bonds, and money market assets net worth - answera measure of a person's financial condition at a given time, equal to what that person owns (assets) minus what that person owes (liabilities) open-end credit - answeran agreement with a financial institution that gives a borrower the use of money up to a specified limit for an indefinite time as long as repayment of the outstanding balance and finance charge proceeds on schedule; also known as revolving credit or a revolving line of credit. A credit card is an example. opportunity cost - answerthe value of possible alternatives that a person gives up when making one choice instead of another; also known as a trade-off pawnshop - answeran easy-access credit business that makes high-interest loans secured by personal property collateral, such as jewelry