| A | B |
|---|
| What word means “having unlimited wants and needs but limited resources”? | scarcity |
| What term is used to describe the value of an alternative that is not chosen? | opportunity cost |
| What type of investment scam is used to get investors to put money into a pyramid that doesn't actually pay out as it promised? | Ponzi or "pyramid" scheme |
| Where can a person report a business that has defrauded them? | Attorney General (state) or Federal Trade Commission (federal) |
| What is it called when a person makes a profit by selling shares of stock at a higher price than they paid for them? | capital gain |
| How do banks make a profit? | charging interest to borrowers |
| What do individuals buy to protect their property and assets from accidents and liability? | insurance |
| Where do banks acquire the money that they use to make loans? | deposits |
| What is an item of value called that is pledged in order to secure a loan? | collateral |
| What figure is used to inform a borrower of the total annual percentage cost of a loan or other form of credit? | annual percentage rate (APR) |
| What form of money can be used to purchase something now and pay for it later on a monthly basis? | credit |
| What is the disadvantage of using credit? | increased debt |
| What do payroll taxes pay for? | Social Security and Medicare |
| Which taxes are withheld from an employee's paycheck? | payroll and income taxes |
| Which type of insurance is required to operate a motor vehicle in North Carolina? | liability |
| What do lenders look at to determine the risk involved in making a loan to a borrower? | credit score |
| What do you call a fund operated by a professional money manager who selects a large and diverse group of stocks? | mutual fund |
| What figure tell an investor how expensive a stock is compare to other stocks? | P/E ratio |
| What figure tells an investor how much profit they will be paid by the company if they purchase and hold the stock? | dividend |
| What is it called when a person receives an email that looks real in order to get the person to release their personal information? | phishing |
| Which personal information should never be revealed unless it is absolutely legally necessary? | Social Security number |
| What do you call the amount of money that exists in a person's account? | balance |
| What is the total amount of pay that a person receives called? | gross pay |
| What do you call the total amount of a person's pay after taxes and deduction have been withheld? | net pay |
| What is the amount that a borrower owes called? | debt |
| What are the property and money that people own called? | assets |
| What is the monthly/annual bill called that a person pays for buying insurance? | premium |
| What is the payment called that a person makes before their insurance company will pay out any funds for a claim? | deductible |
