CDM - Economics & Personal Finance
1030 - ANS-exchange in real estate without capital gains tax
1040EZ - ANS-The quick tax form most often used, in paper or online, for those with
uncomplicated tax situations.
1099 - ANS-documents different types of payments made by an individual or business,
typically not your employer
401k - ANS-retirement savings plan that comes with tax advantages. It is employer
sponsored and is considered to be a personal pension account
403b - ANS-retirement account designed for certain employees of public schools and other
tax exempt organizations, ie non profit employers, cooperative hospital organizations, and
self employed ministers
50-30-20 Budget Plan - ANS-50% needs, 30% wants, 20% savings/debt
Absolute Advantage - ANS-the ability to carry out a particular economic activity more
efficiently than others. Production at a lower cost.
Adjusted Gross Income - ANS-gross income minus deductions, but before tax
Advance Fee - ANS-promising victim a large sum of money in exchange for a small up front
payment
Aggressive Investment - ANS-maximization of returns by taking a higher risk when investing
Antitrust Laws - ANS-statutes developed by the U.S. Government to protect consumers from
predatory business practices by ensuring that fair competition exists in an open-market
economy.
Aspirational Buying - ANS-When consumers are encouraged to live like those they admire,
even if they can't afford it. Purchases based on how the consumer wants to feel or what type
of person they want to be
Bad Debt - ANS-credit card or consumer debt; does little to improve your financial outcome
Balance of Trade - ANS-the difference between a country's total exports and total imports
Balloon Mortgage - ANS-a large portion o the borrowed principal is repaid in a single
payment at the end of the loan term
Bank Fee - ANS-charged for account set up, maintenance, transactions
Bear Market - ANS-A steady drop in the stock market over a period of time
benefit-cost analysis - ANS-economic model that compares the marginal costs and marginal
benefits of a decision
Better Business Bureau (BBB) - ANS-An example of a non-government agency that hears
consumer complaints at the local and state levels and tries to steer consumers to reliable
businesses. Aims to advance marketplace trust
Blue Chip Stocks - ANS-stocks of large, well-established corporations with a solid record of
profitability
Bond - ANS-investment security where an investor lends money to a company or a
government for a set period of time, in exchange for interest payments
Budget Constraint - ANS-all possible combinations of consumption that someone can afford,
given the price of goods and their income
Bull Market - ANS-A period of increased stock trading and rising stock prices
Business Grant - ANS-money given to a business to help them further their business
, Capital Gains - ANS-profit from the sale of real estate or another investment
Capital Gains Taxes - ANS-tax on the sale of assets owned 1 year or less
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
Children's Online Privacy Protection Act (COPPA) - ANS-A law created to protect to privacy
of children under 13. Requires that sites must require parental consent for the collection or
use of any personal information of young Web Site users.
Co-Signing Loan - ANS-A co-signer has agreed to pay a loan if the original person fails to
make the payments
Codicil to Will - ANS-A document that amends or adds to an existing will, but does not
replace the original will, it only amends it. As in the case of a will, it should also be dated,
signed and witnessed as per the relevant rules.
Commodities Futures Trading Commission (CFTC) - ANS-regulates US derivatives markets,
including futures, swaps, and certain kind of options to prevent fraud, manipulation, and
abusive practices
comparitive advantage - ANS-the ability to produce a good at a lower opportunity cost than
another producer
Compound Interest - ANS-interest on a loan/deposit calculated on the initial principal +
accumulated interest A=Principal(1+rate/number of times compounded)^number of times
compounded x time periods
Conservative Investment - ANS-preservation of purchasing power of capital with the least
amount of risk in an investment
Consumer Finance Companies - ANS-makes loan to people who have trouble getting a loan
from a bank
Consumer Financial Protection Bureau (CFPB) - ANS-protects consumers from unfair,
deceptive, or abusive practices, particularly with financial products
Consumer Fraud Types - ANS-credit card, check, mail/wire, securities, mortgage debt
collection
Consumer Product Safety Commission (CPSC) - ANS-develops safety standards and issues
recalls for products
Consumer Protection Laws - ANS-laws that protect from fraudulent business practices,
defective products, and dangerous goods & services
Consumer Reports - ANS-nonprofit organization that independently tests products and
publishes the results in a magazine
Consumer Sovereignty - ANS-the needs and desires of consumers control producer output
Contractionary Fiscal Policy - ANS-Fiscal policy used to decrease aggregate demand or
supply. Deliberate measures to decrease government expenditures, increase taxes, or both.
Appropriate during periods of inflation. Good for maintaining a healthy economy.
Contractionary Monetary Policy - ANS-the Federal Reserve's policy of increasing interest
rates to reduce inflation. Reduces monetary expansion.
Conventional Mortgage - ANS-any loan not insured / guaranteed by the government
Cooperative - ANS-a business organization owned and operated by a group of members
with the goal of achieving their own economic, cultural, and social needs
Copyright Laws - ANS-laws designed to protect intellectual property rights and provide
potential monetary rewards for inventiveness and hard work
Corporate Income Tax - ANS-tax on business profits
Coverage Limit - ANS-The maximum amount an insurance company will pay if you file a
claim.
1030 - ANS-exchange in real estate without capital gains tax
1040EZ - ANS-The quick tax form most often used, in paper or online, for those with
uncomplicated tax situations.
1099 - ANS-documents different types of payments made by an individual or business,
typically not your employer
401k - ANS-retirement savings plan that comes with tax advantages. It is employer
sponsored and is considered to be a personal pension account
403b - ANS-retirement account designed for certain employees of public schools and other
tax exempt organizations, ie non profit employers, cooperative hospital organizations, and
self employed ministers
50-30-20 Budget Plan - ANS-50% needs, 30% wants, 20% savings/debt
Absolute Advantage - ANS-the ability to carry out a particular economic activity more
efficiently than others. Production at a lower cost.
Adjusted Gross Income - ANS-gross income minus deductions, but before tax
Advance Fee - ANS-promising victim a large sum of money in exchange for a small up front
payment
Aggressive Investment - ANS-maximization of returns by taking a higher risk when investing
Antitrust Laws - ANS-statutes developed by the U.S. Government to protect consumers from
predatory business practices by ensuring that fair competition exists in an open-market
economy.
Aspirational Buying - ANS-When consumers are encouraged to live like those they admire,
even if they can't afford it. Purchases based on how the consumer wants to feel or what type
of person they want to be
Bad Debt - ANS-credit card or consumer debt; does little to improve your financial outcome
Balance of Trade - ANS-the difference between a country's total exports and total imports
Balloon Mortgage - ANS-a large portion o the borrowed principal is repaid in a single
payment at the end of the loan term
Bank Fee - ANS-charged for account set up, maintenance, transactions
Bear Market - ANS-A steady drop in the stock market over a period of time
benefit-cost analysis - ANS-economic model that compares the marginal costs and marginal
benefits of a decision
Better Business Bureau (BBB) - ANS-An example of a non-government agency that hears
consumer complaints at the local and state levels and tries to steer consumers to reliable
businesses. Aims to advance marketplace trust
Blue Chip Stocks - ANS-stocks of large, well-established corporations with a solid record of
profitability
Bond - ANS-investment security where an investor lends money to a company or a
government for a set period of time, in exchange for interest payments
Budget Constraint - ANS-all possible combinations of consumption that someone can afford,
given the price of goods and their income
Bull Market - ANS-A period of increased stock trading and rising stock prices
Business Grant - ANS-money given to a business to help them further their business
, Capital Gains - ANS-profit from the sale of real estate or another investment
Capital Gains Taxes - ANS-tax on the sale of assets owned 1 year or less
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
Children's Online Privacy Protection Act (COPPA) - ANS-A law created to protect to privacy
of children under 13. Requires that sites must require parental consent for the collection or
use of any personal information of young Web Site users.
Co-Signing Loan - ANS-A co-signer has agreed to pay a loan if the original person fails to
make the payments
Codicil to Will - ANS-A document that amends or adds to an existing will, but does not
replace the original will, it only amends it. As in the case of a will, it should also be dated,
signed and witnessed as per the relevant rules.
Commodities Futures Trading Commission (CFTC) - ANS-regulates US derivatives markets,
including futures, swaps, and certain kind of options to prevent fraud, manipulation, and
abusive practices
comparitive advantage - ANS-the ability to produce a good at a lower opportunity cost than
another producer
Compound Interest - ANS-interest on a loan/deposit calculated on the initial principal +
accumulated interest A=Principal(1+rate/number of times compounded)^number of times
compounded x time periods
Conservative Investment - ANS-preservation of purchasing power of capital with the least
amount of risk in an investment
Consumer Finance Companies - ANS-makes loan to people who have trouble getting a loan
from a bank
Consumer Financial Protection Bureau (CFPB) - ANS-protects consumers from unfair,
deceptive, or abusive practices, particularly with financial products
Consumer Fraud Types - ANS-credit card, check, mail/wire, securities, mortgage debt
collection
Consumer Product Safety Commission (CPSC) - ANS-develops safety standards and issues
recalls for products
Consumer Protection Laws - ANS-laws that protect from fraudulent business practices,
defective products, and dangerous goods & services
Consumer Reports - ANS-nonprofit organization that independently tests products and
publishes the results in a magazine
Consumer Sovereignty - ANS-the needs and desires of consumers control producer output
Contractionary Fiscal Policy - ANS-Fiscal policy used to decrease aggregate demand or
supply. Deliberate measures to decrease government expenditures, increase taxes, or both.
Appropriate during periods of inflation. Good for maintaining a healthy economy.
Contractionary Monetary Policy - ANS-the Federal Reserve's policy of increasing interest
rates to reduce inflation. Reduces monetary expansion.
Conventional Mortgage - ANS-any loan not insured / guaranteed by the government
Cooperative - ANS-a business organization owned and operated by a group of members
with the goal of achieving their own economic, cultural, and social needs
Copyright Laws - ANS-laws designed to protect intellectual property rights and provide
potential monetary rewards for inventiveness and hard work
Corporate Income Tax - ANS-tax on business profits
Coverage Limit - ANS-The maximum amount an insurance company will pay if you file a
claim.
