Gross Domestic Product - ANSWER The nation's broadest measure of
economic health; it reports how much economic activity (all goods and
services) has occurred within the US borders during a given period.
Leading Economic Indicators - ANSWER Statistics that change before the
economy changes, thus helping to predict how the economy will do in the future
such as the stock market, number of new business permits and the consumer
confidence index.
Index of Leading Economic Indicators - ANSWER Four composite index
reported monthly by the Conference Board that suggests the future direction of
the US economy.
Consumer Price Index - ANSWER A broad measure of changes in the prices
of all goods and services purchased for consumption by urban households. (A
measure of the overall cost of the goods and services bought by a typical
consumer)
Purchasing Power - ANSWER Measure of the goods and services that one's
income will buy.
Opportunity Cost - ANS The opportunity cost of any decision is the value of
the next best alternative that must be forgone.
Tax Exempt Income - ANS Income from an investment whose earnings are
free or exempt from taxation.
, Tax-deferred Income - ANSWER A income properly exempt from income
taxes that may or may not be taxed in a future tax year.
Time Value of Money - ANSWER A method by which one can compare cash
flows across time, either as what a future cash flow is worth today (present
value) or what an investment made today will be worth in the future (future
value). Also, the cost of money borrowed or lent; it is commonly known as
interest and accounts for the time-value-of-money concept-that dollars to be
received or paid out at some future date are not the same as dollars received or
paid out today.
Compounding - ANSWER The addition of interest to principal; the power of
compounding depends on both the frequency of the compounding and periodic
interest rate applied.
Compound Interest - ANSWER Compound interest is the return of interest on
interest and occurs when interest is added to the principal so that going forward,
the interest that has been added also earns interest.
Cafeteria Plan - ANSWER A type of employee benefit plan where the
employees are given a choice between cash -that is taxable- and at least one
other non-taxable benefit. These benefits qualify as nontaxable or tax-sheltered
benefits. Employees choose the benefits they want and can design their own
benefits package.
Annuity - ANSWER A stream of payments to be received in the future.
Flexible Spending Account - ANSWER An employer-sponsored account that
allows employee-paid expenses for medical or dependent care to be paid with
an employee's pretax dollars rather than after tax income.
economic health; it reports how much economic activity (all goods and
services) has occurred within the US borders during a given period.
Leading Economic Indicators - ANSWER Statistics that change before the
economy changes, thus helping to predict how the economy will do in the future
such as the stock market, number of new business permits and the consumer
confidence index.
Index of Leading Economic Indicators - ANSWER Four composite index
reported monthly by the Conference Board that suggests the future direction of
the US economy.
Consumer Price Index - ANSWER A broad measure of changes in the prices
of all goods and services purchased for consumption by urban households. (A
measure of the overall cost of the goods and services bought by a typical
consumer)
Purchasing Power - ANSWER Measure of the goods and services that one's
income will buy.
Opportunity Cost - ANS The opportunity cost of any decision is the value of
the next best alternative that must be forgone.
Tax Exempt Income - ANS Income from an investment whose earnings are
free or exempt from taxation.
, Tax-deferred Income - ANSWER A income properly exempt from income
taxes that may or may not be taxed in a future tax year.
Time Value of Money - ANSWER A method by which one can compare cash
flows across time, either as what a future cash flow is worth today (present
value) or what an investment made today will be worth in the future (future
value). Also, the cost of money borrowed or lent; it is commonly known as
interest and accounts for the time-value-of-money concept-that dollars to be
received or paid out at some future date are not the same as dollars received or
paid out today.
Compounding - ANSWER The addition of interest to principal; the power of
compounding depends on both the frequency of the compounding and periodic
interest rate applied.
Compound Interest - ANSWER Compound interest is the return of interest on
interest and occurs when interest is added to the principal so that going forward,
the interest that has been added also earns interest.
Cafeteria Plan - ANSWER A type of employee benefit plan where the
employees are given a choice between cash -that is taxable- and at least one
other non-taxable benefit. These benefits qualify as nontaxable or tax-sheltered
benefits. Employees choose the benefits they want and can design their own
benefits package.
Annuity - ANSWER A stream of payments to be received in the future.
Flexible Spending Account - ANSWER An employer-sponsored account that
allows employee-paid expenses for medical or dependent care to be paid with
an employee's pretax dollars rather than after tax income.
