CDM - Economics & Personal Finance
FICO score - ANS -Credit score from 300-850 that rates how likely a person is to fall 90 days
behind in a payment.
W-2 - ANS -A statement of an individual's annual wages and taxes provided by an employer
that must be included with the employee's federal, state, and city income tax returns.
1040EZ - ANS -The quick tax form most often used, in paper or online, for those with
uncomplicated tax situations.
Tax Exemption - ANS -A number that includes the taxpayer and any dependents. Because
most teens are listed as dependents on their parents taxes, their tax exemption is 0.
W4 - ANS -IRS form completed by a new employee to indicate their tax situation to the
employer, so the correct amount of federal tax can be withheld from their paycheck.
YTD Return - ANS -year to date profit on an investment
Dividend - ANS -The portion of corporate profits paid out to stockholders
Bear Market - ANS -A steady drop in the stock market over a period of time
Bull Market - ANS -A period of increased stock trading and rising stock prices
Deductible - ANS -Amount you must pay before you begin receiving any benefits from your
insurance company
Term Life Insurance - ANS -Life insurance that pays a death benefit if the policyholder dies
within a specific time period but has no remaining value at the end of this time.
Premium - ANS -Amount you pay monthly, quarterly, semiannually or annually to purchase
different types of insurance
Renters Insurance - ANS -a type of insurance that covers the loss of a tenant's personal
property as a result of damage or theft
,Rule of 72 - ANS -The number of years it takes for a certain amount to double in value is equal
to 72 divided by its annual rate of interest.
Money Order - ANS -a written order for the payment of a sum to a named individual
Money Market Account - ANS -a savings account that requires a minimum balance and earns
interest that varies from month to month. The most liquid form of investment
Monetary Policy - ANS -how the Federal Reserve manages the nation's money supply
Savings & Loan Associations - ANS -financial institutions that hold customers' funds in
interest-bearing accounts and invest mainly in mortgage loans
Certificate of Deposit (CD) - ANS -a certificate issued by a bank that guarantees the payment of
a fixed interest rate until a specified date in the future
Individual Retirement Account (IRA) - ANS -Tax sheltered retirement plan that allows individuals
or married couples to save a certain amount of untaxed income per year, with interest being tax
deferred
Mutual Fund - ANS -pools the money of many investors - its shareholders - to invest in a variety
of securities
Dow Jones Industrial Average - ANS -a measure of stock market prices based on thirty leading
companies of the new york stock exchange (nyse) and nasdaq
NASDAQ - ANS -a computerized data system to provide brokers with price quotations for
securities traded over the counter
Blue Chip Stocks - ANS -stocks of large, well-established corporations with a solid record of
profitability
Liquidity - ANS -the ease with which an asset can be converted into cash
Progressive Tax - ANS -A tax for which the percentage of income paid in taxes increases as
income increases
Regressive Tax - ANS -A tax for which the percentage of income paid in taxes decreases as
income increases
FICA (Federal Insurance Contributions Act) - ANS -tax levied on employers and employees to
support Social Security and Medicare
, Equifax, TransUnion, Experian - ANS -the three credit reporting agencies that review, report,
and maintain consumer credit files
Perfect Competition - ANS -the degree of competition in which there are many sellers in a
market and none is large enough to dictate the price of a product; it is easy to enter and exit the
market
Monopolistic Competition - ANS -A market structure in which barriers to entry are low and many
firms compete by selling similar, but not identical, substitute products.
Oligopoly - ANS -a state of limited competition, in which a market is shared by a small number
of producers or sellers.
Monopoly - ANS -One company is the only supplier in a commodity or service
Opportunity Cost - ANS -the loss of potential gain from the next best alternative when one
alternative is chosen
Profit Motive - ANS -the force that encourages people and organizations to improve their
material well-being. Operation to maximize profits
Consumer Sovereignty - ANS -the needs and desires of consumers control producer output
Social & Economic Goals - ANS -freedom, security, equity, growth, efficiency, and stability
Law of Supply - ANS -As price increases, quantity supplied increases
As price decreases, quantity supplied decreases
*creates a direct, linear relationship
Elasticity - ANS -the percentage in change in one economic variable in response to a change
another
Factors that shift supply and demand - ANS -changes in taste, population, income, and prices
of substitute or complementary goods
Incentive - ANS -profit sharing, bonuses, pay check, stock options, tax credits, business grants,
fines, fees, pay docks, promotions, demotions
Profit Sharing - ANS -incentive pay in which payments are a percentage of the organization's
profits and do not become part of the employees' base salary
Stock Options - ANS -rights to buy a certain number of shares of stock at a specified price,
usually following a "vesting period"
FICO score - ANS -Credit score from 300-850 that rates how likely a person is to fall 90 days
behind in a payment.
W-2 - ANS -A statement of an individual's annual wages and taxes provided by an employer
that must be included with the employee's federal, state, and city income tax returns.
1040EZ - ANS -The quick tax form most often used, in paper or online, for those with
uncomplicated tax situations.
Tax Exemption - ANS -A number that includes the taxpayer and any dependents. Because
most teens are listed as dependents on their parents taxes, their tax exemption is 0.
W4 - ANS -IRS form completed by a new employee to indicate their tax situation to the
employer, so the correct amount of federal tax can be withheld from their paycheck.
YTD Return - ANS -year to date profit on an investment
Dividend - ANS -The portion of corporate profits paid out to stockholders
Bear Market - ANS -A steady drop in the stock market over a period of time
Bull Market - ANS -A period of increased stock trading and rising stock prices
Deductible - ANS -Amount you must pay before you begin receiving any benefits from your
insurance company
Term Life Insurance - ANS -Life insurance that pays a death benefit if the policyholder dies
within a specific time period but has no remaining value at the end of this time.
Premium - ANS -Amount you pay monthly, quarterly, semiannually or annually to purchase
different types of insurance
Renters Insurance - ANS -a type of insurance that covers the loss of a tenant's personal
property as a result of damage or theft
,Rule of 72 - ANS -The number of years it takes for a certain amount to double in value is equal
to 72 divided by its annual rate of interest.
Money Order - ANS -a written order for the payment of a sum to a named individual
Money Market Account - ANS -a savings account that requires a minimum balance and earns
interest that varies from month to month. The most liquid form of investment
Monetary Policy - ANS -how the Federal Reserve manages the nation's money supply
Savings & Loan Associations - ANS -financial institutions that hold customers' funds in
interest-bearing accounts and invest mainly in mortgage loans
Certificate of Deposit (CD) - ANS -a certificate issued by a bank that guarantees the payment of
a fixed interest rate until a specified date in the future
Individual Retirement Account (IRA) - ANS -Tax sheltered retirement plan that allows individuals
or married couples to save a certain amount of untaxed income per year, with interest being tax
deferred
Mutual Fund - ANS -pools the money of many investors - its shareholders - to invest in a variety
of securities
Dow Jones Industrial Average - ANS -a measure of stock market prices based on thirty leading
companies of the new york stock exchange (nyse) and nasdaq
NASDAQ - ANS -a computerized data system to provide brokers with price quotations for
securities traded over the counter
Blue Chip Stocks - ANS -stocks of large, well-established corporations with a solid record of
profitability
Liquidity - ANS -the ease with which an asset can be converted into cash
Progressive Tax - ANS -A tax for which the percentage of income paid in taxes increases as
income increases
Regressive Tax - ANS -A tax for which the percentage of income paid in taxes decreases as
income increases
FICA (Federal Insurance Contributions Act) - ANS -tax levied on employers and employees to
support Social Security and Medicare
, Equifax, TransUnion, Experian - ANS -the three credit reporting agencies that review, report,
and maintain consumer credit files
Perfect Competition - ANS -the degree of competition in which there are many sellers in a
market and none is large enough to dictate the price of a product; it is easy to enter and exit the
market
Monopolistic Competition - ANS -A market structure in which barriers to entry are low and many
firms compete by selling similar, but not identical, substitute products.
Oligopoly - ANS -a state of limited competition, in which a market is shared by a small number
of producers or sellers.
Monopoly - ANS -One company is the only supplier in a commodity or service
Opportunity Cost - ANS -the loss of potential gain from the next best alternative when one
alternative is chosen
Profit Motive - ANS -the force that encourages people and organizations to improve their
material well-being. Operation to maximize profits
Consumer Sovereignty - ANS -the needs and desires of consumers control producer output
Social & Economic Goals - ANS -freedom, security, equity, growth, efficiency, and stability
Law of Supply - ANS -As price increases, quantity supplied increases
As price decreases, quantity supplied decreases
*creates a direct, linear relationship
Elasticity - ANS -the percentage in change in one economic variable in response to a change
another
Factors that shift supply and demand - ANS -changes in taste, population, income, and prices
of substitute or complementary goods
Incentive - ANS -profit sharing, bonuses, pay check, stock options, tax credits, business grants,
fines, fees, pay docks, promotions, demotions
Profit Sharing - ANS -incentive pay in which payments are a percentage of the organization's
profits and do not become part of the employees' base salary
Stock Options - ANS -rights to buy a certain number of shares of stock at a specified price,
usually following a "vesting period"
