Gross Domestic Product (GDP) - ANSWER the nations broadest measure of
economic health, it reports how much economic activity (all goods and services)
has occurred within the U.S. boarders within a given period
Index of Leading Economic Indicators (LEI) - ANSWER a composite index
reported monthly by the conference board that collects relevant economic data
for business, governments, and individuals use
Inflation - ANSWER a steady and sustained rise in general price levels across
economic sectors; measured by the changing cost over time of a "market
basket" of goods and services that a typical household might purchase
Consumer Price Index (CPI) - ANSWER a broad measure of changes in the
price of all goods and services purchased for consumption by urban households
Purchasing Power - ANSWER measure of the goods and services that ones
income will buy
Opportunity Cost - ANSWER the opportunity cost of any decision is the value
of the next best alternative that must be forgone
Tax-Exempt Income - ANSWER income that is totally and permanently free
of taxes
Tax-Sheltered Income (Tax-Deferred) - ANSWER income exempt from
income taxes in the current year but that will be subject to taxation in a latter tax
year
Time Value of Money (TVM) - 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 today will be worth in the future (future
value)
, Compounding - ANSWER when interest on an investment itself earns interest
Employee Benefit - ANSWER compensation for employment that does not
take the form of wages, salaries, commissions, or other cash payment
Cafeteria Plan (Flexible Benefit Plan) - ANSWER an employer sponsored plan
that gives the employee a choice of selecting either cash or one or more
qualifying nontaxable benefits
Flexible Spending Account (FSA) - 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
Health Savings Account (HSA) - ANSWER special savings account intended
for people who have a high-deductible health care plan (with annual deductible
of at least $1,000 for individuals and $2,000 for families)
Tax-Sheltered Retirement Plan - ANSWER employer sponsored, defined
contribution retirement plans including 401(k) plans and similar 403(b) and 457
plans
Monetary Assets - ANSWER assets that can be used as cash (ex. cash,
checking account, savings account, money market, tax refunds due, money
owed to you by others)
Tangible Assets - ANSWER personal property used to maintain your everyday
lifestyle (ex. automobiles, motorcycle, bike, boat, house, condo, furniture,
appliances, jewelry, tools, clothing)
Investment Assets - ANSWER tangible and intangible items acquired for their
monetary benefits (capital assets) (ex. retirement accounts, stocks, bonds,
mutual finds, gold, art, life insurance, annuities)
Insolvent - ANSWER when a person is carrying a negative net worth
(liabilities are greater than assets)
economic health, it reports how much economic activity (all goods and services)
has occurred within the U.S. boarders within a given period
Index of Leading Economic Indicators (LEI) - ANSWER a composite index
reported monthly by the conference board that collects relevant economic data
for business, governments, and individuals use
Inflation - ANSWER a steady and sustained rise in general price levels across
economic sectors; measured by the changing cost over time of a "market
basket" of goods and services that a typical household might purchase
Consumer Price Index (CPI) - ANSWER a broad measure of changes in the
price of all goods and services purchased for consumption by urban households
Purchasing Power - ANSWER measure of the goods and services that ones
income will buy
Opportunity Cost - ANSWER the opportunity cost of any decision is the value
of the next best alternative that must be forgone
Tax-Exempt Income - ANSWER income that is totally and permanently free
of taxes
Tax-Sheltered Income (Tax-Deferred) - ANSWER income exempt from
income taxes in the current year but that will be subject to taxation in a latter tax
year
Time Value of Money (TVM) - 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 today will be worth in the future (future
value)
, Compounding - ANSWER when interest on an investment itself earns interest
Employee Benefit - ANSWER compensation for employment that does not
take the form of wages, salaries, commissions, or other cash payment
Cafeteria Plan (Flexible Benefit Plan) - ANSWER an employer sponsored plan
that gives the employee a choice of selecting either cash or one or more
qualifying nontaxable benefits
Flexible Spending Account (FSA) - 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
Health Savings Account (HSA) - ANSWER special savings account intended
for people who have a high-deductible health care plan (with annual deductible
of at least $1,000 for individuals and $2,000 for families)
Tax-Sheltered Retirement Plan - ANSWER employer sponsored, defined
contribution retirement plans including 401(k) plans and similar 403(b) and 457
plans
Monetary Assets - ANSWER assets that can be used as cash (ex. cash,
checking account, savings account, money market, tax refunds due, money
owed to you by others)
Tangible Assets - ANSWER personal property used to maintain your everyday
lifestyle (ex. automobiles, motorcycle, bike, boat, house, condo, furniture,
appliances, jewelry, tools, clothing)
Investment Assets - ANSWER tangible and intangible items acquired for their
monetary benefits (capital assets) (ex. retirement accounts, stocks, bonds,
mutual finds, gold, art, life insurance, annuities)
Insolvent - ANSWER when a person is carrying a negative net worth
(liabilities are greater than assets)
