Personal Finance WISE Test Latest Update with complete
solution
Inflation
the rise in the level of prices for goods and services
Time Value of Money
the increase of an amount of money due to earned interest or dividends
Balance Sheet
statement that identifies the items you own, what you owe, and your net worth
Paying Yourself First
the concept of setting aside a portion of your income for savings before spending any of
it
Commission
a fee charged by a brokerage firm or investment bank to buy or sell securities of an
investor
Potential Earning Power
the amount of money you may earn over time
Finance Charge
the total dollar amount of interest you pay to use credit
Compounding
the process of earning interest on both the principal and any prior interest earned in
your account
Medicare
is a government sponsored health care coverage for the elderly
Credit Limit
The maximum dollar amount of money the creditor will make available to you on your
credit card
Medicaid
is a government sponsored health care plan for people with low income
Grace Period
the amount of time a credit card company provides before you incur finance charges
Liquidity
the ability to easily convert your financial resources into cash without loss of value
Annual Percentage Yield
term for the amount of interest that a $100 deposit would earn after compounding for
one year (as defined by law)
401(k)
sets aside a portion of your pay, plus (usually) an employer match.
Economics
The study of the decisions that go into making, distributing and using goods and
services.
Dealer Invoice Price
Price the car dealer paid to purchase the car from the manufacturer.
Opportunity Cost
A trade-off or what you are giving up when you make one choice over another.
solution
Inflation
the rise in the level of prices for goods and services
Time Value of Money
the increase of an amount of money due to earned interest or dividends
Balance Sheet
statement that identifies the items you own, what you owe, and your net worth
Paying Yourself First
the concept of setting aside a portion of your income for savings before spending any of
it
Commission
a fee charged by a brokerage firm or investment bank to buy or sell securities of an
investor
Potential Earning Power
the amount of money you may earn over time
Finance Charge
the total dollar amount of interest you pay to use credit
Compounding
the process of earning interest on both the principal and any prior interest earned in
your account
Medicare
is a government sponsored health care coverage for the elderly
Credit Limit
The maximum dollar amount of money the creditor will make available to you on your
credit card
Medicaid
is a government sponsored health care plan for people with low income
Grace Period
the amount of time a credit card company provides before you incur finance charges
Liquidity
the ability to easily convert your financial resources into cash without loss of value
Annual Percentage Yield
term for the amount of interest that a $100 deposit would earn after compounding for
one year (as defined by law)
401(k)
sets aside a portion of your pay, plus (usually) an employer match.
Economics
The study of the decisions that go into making, distributing and using goods and
services.
Dealer Invoice Price
Price the car dealer paid to purchase the car from the manufacturer.
Opportunity Cost
A trade-off or what you are giving up when you make one choice over another.
