"The distortion of the medium of exchange (money) caused when amount of money
grows faster than the availability of goods and services to spend it on" is the
definition of: - correct answer-higher inflation
A dollar promised to you a year from now is not worth as much to you as a dollar in
hand today. Why? - correct answer-A dollar given a year from now would be worth
less because of inflation. Inflation decreases the values of a dollar.
Any violation of the terms of a loan contract constitutes - correct answer-default
balloon payment - correct answer-a long string of small payments with one large
payment at the end
Chapter 13 Bankruptcy is also referred to as - correct answer-"workout" or "wage
earner" plan
collateral - correct answer-something a lendor can hold in exchange for the money
Compound interest - correct answer-interest that adds on interest
credit - correct answer-these reduce your tax bill
deductions - correct answer-taxes, medical, charitable contributions, some interest
, exemptions - correct answer-yourself and dependants
Filing status - correct answer-whether you are single, married, etc.
Give 1 example of a typical riskless investment and briefly describe how it would be
used - correct answer-There is NO SUCH THING as a riskless investment.
gross income - correct answer-the amount of income before deductions, exemptions,
or taxes
Having your investment build over time by earning interest on your interest is the
idea behind - correct answer-compounding
if the lending agreement does not contain a "wage assignment clause" the court
seizing of your wages is called - correct answer-garnishment
If you cannot complete your filing of the previous year's federal income taxes by April
15th you can file for an extension which - correct answer-automatically extends your
filing deadline to Aug. 15th
List 3 items that are deductible on Schedule A (Itemized Deductions) - correct
answer-Health insurance, home mortgage, business write offs
List 4 pieces of information about you that might impact your credit score (FICO) -
correct answer-1) how much you buy on credit
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