Financial Literacy 2023 with verified questions and answers

wealth An abundance of assets that are accumulated over time. stagflation A period of slow economic growth and high inflation. values Beliefs and principles about what is important or desirable. atm card A card that allows customers to withdraw cash from and make deposits to their accounts using a cash machine. minimum wage The lowest hourly wage employers can pay most workers by law. cash flow A summary of the amount of money received as well as the amount paid out for goods and services during a specific period. command economy a system in which a central authority controls economic activities. comprehensive Insurance that pays for damage to your car caused by something other than a collision. abilities Physical and mental skills developed through learning savings Protects you against unexpected life events electronic funds transfer The movement of money electronically from one financial institution to another. tax credit Tax benefit that reduces the amount of income on which a worker pays taxes. fica the part of the tax code that applies to Medicare and Social Security taxes. monetary policy Policies used by government to control the supply of money and credit. commercial bank for-profit financial institution organized to receive, transfer, and lend money to individuals, businesses, and governments. supply and demand The forces present in a market economy that determine the prices of goods and services credit union A nonprofit financial cooperative owned by and operated for the benefit of its members. It accepts deposits, makes loans, and provides other services. deficit A financial obligation that a person currently owes or will owe in the future. outstanding check A check that has not completed the check cycle and does not show up on the bank statement goal An objective a person wants to attain. financial literacy The understanding of the basic knowledge and skills needed to manage financial resources pay yourself first Savings strategy in which you save before paying bills. monopoly When a single seller is in control of the entire supply of a product or service. beneficiary Person named by the policyholder to receive the death benefit of an insurance policy. check An order for a specific amount of money payable to a specific payee. budget A spending plan for the use of money over time based on goals and expected income internship Short-term position with a sponsoring organization that gives an opportunity to gain on-the-job experience in a certain field of study or occupation. traditional economy A system in which economic decisions are based on a society's values, culture, and customs fdic A U.S. government agency that protects bank customers by insuring deposits as well as examining and supervising financial institutions. continuing education Learning you pursue after you complete your formal education and training. variable expense an expense that is paid monthly, but the amount varies deductible the amount policyholders are required to pay before insurance pays for any service net income earnings after deductions interests Include activities you enjoy, subjects you like, ideas that fascinate you, sports you play, or hobbies you follow. opportunity cost The value of the best option or alternative given up. fixed expense expenses in which the same amount is paid each month policyholder a person who owns an insurance policy market economy A system in which privately owned businesses compete for profits with limited government regulation. wants items a person would like to have but that are not essential to life. periodic expense A system in which privately owned businesses compete for profits with limited government regulation. inflation A general increase in prices and fall in the purchasing value of money. distance learning Education or training is delivered to the student online, by mail, or on television. premium Amount of money paid to an insurance company on a regular basis for a policy. income Allowances, wages, tips and interest earned on savings. budget variance The difference between the projected budget and the actual costs associated with the budget. overdraft When you write a check for money that you do not have in your bank account. depression An extended period of economic recession. wage A payment in exchange for an employee's labor or services. career clusters 16 general groupings of occupational and career areas. career ladder Outline of jobs in a given career field that are available at different levels of education and training and experience. unearned income income derived from sources other than employment property damage liability insurance that only pays for damage you caused another vehicle term insurance protection for a set period of time salary payment for work that is expressed as an annual figure deductions money subtracted by your employer for taxes and other work related items endorse to sign one's name on the back of a check in order to cash or deposit the check net worth the difference between what a person owns and owes financial plan a road map for using your money aptitudes natural physical and mental talents needs items a person must have to survive risk a measure of the likelihood that something will be lost recession an extended period of slow or no economic growth fiscal policy taxing and spending policies of government gross income earnings before the deductions career plan an outline of steps or actions you can take to reach a career goal direct deposit When money that is owed to you is deposited electronically into your bank account. commission income paid as a percentage of sales made by a salesperson bank statement A record of checks, deposits, and charges on a checking account. w-2 A Wage and Tax Statement sent to employees in January of the following year identifying the wages earned and taxes deducted from the employee that year. cost benefit principle A method of choosing a course of action after evaluating information and weighing the costs and benefits of alternative actions and their consequences. fee-for-service plans pay for covered medical services after treatment is provided usually allow policyholders to go to any licensed health care provider or accredited hospital of their choice workers' compensation employer-provided insurance for those with work- related illnesses or injuries liability coverage ◦ protects you if others are injured on your property ◦ offers protection if you or your family, pets, or property accidentally damage the property of others ◦ covers higher loss amounts with an umbrella policy bodily injury liability protects you when you cause an auto accident resulting in injury or death of other parties collision insurance pays for car damage due to auto accident and collision with another car or object tip money paid for service beyond what is required piece work income wage based on a rate per unit of work completed medicaid government program that pays certain health care costs for eligible low income individuals and families interest paid by financial institutions, businesses, and government in exchange for the use of customers' money tax deduction expense that can be subtracted from taxable income exemption tax benefit that reduces the amount of income that is taxed bounce this happens when there is not enough funds in an account for the check