CDM - Economics & Personal Finance
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FICO score - ✔✔Credit score from 300-850 that rates how likely a person is to fall 90
days behind in a payment.
W-2 - ✔✔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 - ✔✔The quick tax form most often used, in paper or online, for those with
uncomplicated tax situations.
Tax Exemption - ✔✔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 - ✔✔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 - ✔✔year to date profit on an investment
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,Dividend - ✔✔The portion of corporate profits paid out to stockholders
Bear Market - ✔✔A steady drop in the stock market over a period of time
Bull Market - ✔✔A period of increased stock trading and rising stock prices
Deductible - ✔✔Amount you must pay before you begin receiving any benefits from
your insurance company
Term Life Insurance - ✔✔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 - ✔✔Amount you pay monthly, quarterly, semiannually or annually to
purchase different types of insurance
Renters Insurance - ✔✔a type of insurance that covers the loss of a tenant's personal
property as a result of damage or theft
Rule of 72 - ✔✔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 - ✔✔a written order for the payment of a sum to a named individual
Money Market Account - ✔✔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 - ✔✔how the Federal Reserve manages the nation's money supply
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, Savings & Loan Associations - ✔✔financial institutions that hold customers' funds in
interest-bearing accounts and invest mainly in mortgage loans
Certificate of Deposit (CD) - ✔✔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) - ✔✔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 - ✔✔pools the money of many investors - its shareholders - to invest in a
variety of securities
Dow Jones Industrial Average - ✔✔a measure of stock market prices based on thirty
leading companies of the new york stock exchange (nyse) and nasdaq
NASDAQ - ✔✔a computerized data system to provide brokers with price quotations
for securities traded over the counter
Blue Chip Stocks - ✔✔stocks of large, well-established corporations with a solid record
of profitability
Liquidity - ✔✔the ease with which an asset can be converted into cash
Progressive Tax - ✔✔A tax for which the percentage of income paid in taxes increases as
income increases
100% Pass Guarantee Katelyn Whitman, All Rights Reserved © 2025 3
Exam Questions and Answers 100%
Pass
FICO score - ✔✔Credit score from 300-850 that rates how likely a person is to fall 90
days behind in a payment.
W-2 - ✔✔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 - ✔✔The quick tax form most often used, in paper or online, for those with
uncomplicated tax situations.
Tax Exemption - ✔✔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 - ✔✔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 - ✔✔year to date profit on an investment
100% Pass Guarantee Katelyn Whitman, All Rights Reserved © 2025 1
,Dividend - ✔✔The portion of corporate profits paid out to stockholders
Bear Market - ✔✔A steady drop in the stock market over a period of time
Bull Market - ✔✔A period of increased stock trading and rising stock prices
Deductible - ✔✔Amount you must pay before you begin receiving any benefits from
your insurance company
Term Life Insurance - ✔✔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 - ✔✔Amount you pay monthly, quarterly, semiannually or annually to
purchase different types of insurance
Renters Insurance - ✔✔a type of insurance that covers the loss of a tenant's personal
property as a result of damage or theft
Rule of 72 - ✔✔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 - ✔✔a written order for the payment of a sum to a named individual
Money Market Account - ✔✔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 - ✔✔how the Federal Reserve manages the nation's money supply
100% Pass Guarantee Katelyn Whitman, All Rights Reserved © 2025 2
, Savings & Loan Associations - ✔✔financial institutions that hold customers' funds in
interest-bearing accounts and invest mainly in mortgage loans
Certificate of Deposit (CD) - ✔✔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) - ✔✔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 - ✔✔pools the money of many investors - its shareholders - to invest in a
variety of securities
Dow Jones Industrial Average - ✔✔a measure of stock market prices based on thirty
leading companies of the new york stock exchange (nyse) and nasdaq
NASDAQ - ✔✔a computerized data system to provide brokers with price quotations
for securities traded over the counter
Blue Chip Stocks - ✔✔stocks of large, well-established corporations with a solid record
of profitability
Liquidity - ✔✔the ease with which an asset can be converted into cash
Progressive Tax - ✔✔A tax for which the percentage of income paid in taxes increases as
income increases
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