PERSONAL FINANCE FBLA Study
Guide Questions and Verified Solutions
Elaborated & Detailed Answers
Credit Card
You can pay for stuff even if you don't have the money on hand.
Easy to make reservations at places where they require you to
secure a spot like at hotels.
Debtor
A person who owes money.
You must file your tax return by ________ every year
April 15
Special Endorsement
allows you to make your business check payable to someone
else.
On the back of the check, you would write "Pay to the order of
Jane Doe" and then sign it.
Blank Endorsement
Has no designated payee. One would be used when the account
holder wishes to pass down payment but is not sure of the name
of the payee.
Partial Endorsement
Allows transferring to the endorsee a part of the amount payable.
Bob holds a bill for $5,000 and endorses it as "Pay Joe or order
$2500"
Restrictive Endorsement
,A conditional guarantee of a transfer of a negotiable instrument.
That is an endorsement that takes effect only on the occurrence
or non-occurrence of another act or event.
"pay to the order of the bank"
The more allowances you claim,
the less tax you will have withheld from your paycheck
Gross Pay
Pay before tax
Rate x Hours Worked:
Incentive Pay
Incentive pay is a type of wage or salary payment that is made to
employees in addition to their normal wages or salaries such as
bonuses.
Overtime pay
pay received for hours worked in addition to regular hours
Net pay
take-home pay or the amount employees earn after all payroll
deductions are subtracted from their gross pay.
Maturity
the agreed-upon date on which the investment ends, often
triggering the repayment of a loan or bond, the payment of a
commodity or cash payment, or some other payment or
settlement term.
Yield
How much income an investment generates, separate from the
principal. Usually expressed as a percentage.term-24
Corporate Bonds
A corporate bond is issued by a corporation to raise financing for
various reasons such as ongoing operations, mergers & and
, acquisitions, or to expand business.
Maturity over a year - Usually long-term and low risk
Investment Grade Corporate Bonds
BB+ and above:
Usually lower risk
Speculative Grade Corporate Bonds
BB+ and below:
Higher yield but more risk
Annuity
a form of insurance or investment entitling the investor to a series
of annual sums.
Real Estate
Regarding to investments in properties consisting of land and
buildings.
Stocks
Securities that represent part ownership or equity in a corporation.
Can be invested in multiple ways from day-trading to long-term
holding.
Trust Will
A will is a legal document that spells out how you want your
affairs handled and assets distributed after you die.
A fiduciary arrangement whereby a grantor (also called a trustor)
gives a trustee the right to hold and manage assets for the benefit
of a specific purpose or person.
Simple Will
a legal document that states who will inherit your assets and
belongings after you pass away.
Codicil
a legal document that dictates any modifications or amendments
to your last Will and Testament.
Guide Questions and Verified Solutions
Elaborated & Detailed Answers
Credit Card
You can pay for stuff even if you don't have the money on hand.
Easy to make reservations at places where they require you to
secure a spot like at hotels.
Debtor
A person who owes money.
You must file your tax return by ________ every year
April 15
Special Endorsement
allows you to make your business check payable to someone
else.
On the back of the check, you would write "Pay to the order of
Jane Doe" and then sign it.
Blank Endorsement
Has no designated payee. One would be used when the account
holder wishes to pass down payment but is not sure of the name
of the payee.
Partial Endorsement
Allows transferring to the endorsee a part of the amount payable.
Bob holds a bill for $5,000 and endorses it as "Pay Joe or order
$2500"
Restrictive Endorsement
,A conditional guarantee of a transfer of a negotiable instrument.
That is an endorsement that takes effect only on the occurrence
or non-occurrence of another act or event.
"pay to the order of the bank"
The more allowances you claim,
the less tax you will have withheld from your paycheck
Gross Pay
Pay before tax
Rate x Hours Worked:
Incentive Pay
Incentive pay is a type of wage or salary payment that is made to
employees in addition to their normal wages or salaries such as
bonuses.
Overtime pay
pay received for hours worked in addition to regular hours
Net pay
take-home pay or the amount employees earn after all payroll
deductions are subtracted from their gross pay.
Maturity
the agreed-upon date on which the investment ends, often
triggering the repayment of a loan or bond, the payment of a
commodity or cash payment, or some other payment or
settlement term.
Yield
How much income an investment generates, separate from the
principal. Usually expressed as a percentage.term-24
Corporate Bonds
A corporate bond is issued by a corporation to raise financing for
various reasons such as ongoing operations, mergers & and
, acquisitions, or to expand business.
Maturity over a year - Usually long-term and low risk
Investment Grade Corporate Bonds
BB+ and above:
Usually lower risk
Speculative Grade Corporate Bonds
BB+ and below:
Higher yield but more risk
Annuity
a form of insurance or investment entitling the investor to a series
of annual sums.
Real Estate
Regarding to investments in properties consisting of land and
buildings.
Stocks
Securities that represent part ownership or equity in a corporation.
Can be invested in multiple ways from day-trading to long-term
holding.
Trust Will
A will is a legal document that spells out how you want your
affairs handled and assets distributed after you die.
A fiduciary arrangement whereby a grantor (also called a trustor)
gives a trustee the right to hold and manage assets for the benefit
of a specific purpose or person.
Simple Will
a legal document that states who will inherit your assets and
belongings after you pass away.
Codicil
a legal document that dictates any modifications or amendments
to your last Will and Testament.
