Matching Worksheet

What is the cost of borrowing? Interest Rates
If the £ is strong what happens to imports? they become cheaper
If the £ is weak what happens to imports? they become dearer
What do you have to pay on top of a loan? Interest Rate
What is the difference between the £ and the $ Exchange rate
if consumer income is low what does this mean to investment? it decreases
if consumer incomes are high what does this mean to investment? they increase
goods that are always needed are known as necessities
goods that are not needed but often bought when we have money luxury goods
who decides on the interest rate? Bank of England

Unit 6: Introduction to Investing Crossword


Investment contracts in which the investor exchanges a sum of money for a series of payments over time. annuities
A loan to a company to finance a wide array of business purposes—from short-term inventory financing to long-term investments in equipment. commercial loan
A method of interest payment. This is calculated by adding the interest earned by the investment to the previously earned interest. Each time interest is added to your savings the next interest amount is compounded on the new balance. compound interest
A combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure. conglomerate
Regularly purchasing stocks or mutual funds, whether they are high or low, by investing a constant dollar amount so that over the long term the high and low prices of the investment products average out. dollar-cost averaging
An employer-sponsored retirement plan that allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. 401k
A riskier type of investment with a higher potential for return. Examples include stocks, bonds, and mutual funds growth investment
Subject to fast, extreme changes in price or value. volatile
Planning investments and other transactions to match the money and other assets available to an individual over time to the ways in which they want to spend those assets, including personal consumption, charitable donations, support for family members, and gifts. wealth management
A legal relationship in which one person or company holds property, which can include money, real estate, stocks, bonds, collections, automobiles, and personal possessions for the benefit of another. trust
Accounts that can receive and hold funds for a specific purpose such as retirement, college tuition, or medical expenses. If these accounts are established according to federal tax rules, the owner of the account will not have to pay income taxes on the money placed in them until it is withdrawn tax-deferred accounts
The rule is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself. rule of 72
The chance that the rate of return on an investment will be different from what you expected. risk
Accounts that permit individuals to save and invest funds without paying taxes on the income from the investment as long as the proceeds are eventually applied to legitimate educational expenses at an accredited institution. educational plans
The strategy of pursuing an assortment of investments to minimize the effects of risk and volatility. diversification
Helping individuals or a family determine in advance what will happen to their money and other assets after the death of one or more individuals in the family. estate planning
Describing a future financial goal and computing the kinds of income, savings, and investment that will be necessary to achieve the financial goal. financial planning
A safer type of investment with a lower potential for return but that provides regular incomes to investors. Examples include savings accounts and certificates of deposit. income investment
The percentage return on an investment over a set time period, usually a year. interest rate
The original amount of money a person invests (as opposed to interest). principal
The amount of money gained or lost on an investment relative to the amount of money invested, usually expressed as an annual percentage. rate of return
Anticipating a desired or necessary future income after retirement and then creating a plan for the amount of savings and investment needed to create that future income. retirement planning
A company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of shareholders who in turn share in the profits and losses. investment service
The ease with which an investment can be converted into cash. liquidity

Personal Finance Terms Crossword


person or organization that uses a product or service consumer
form of deferred payment credit
obligation of repayment owed by one party debt
system which goods are produced and distributed economy
to be an informed consumer; Financial... literacy
fee paid by a borrower to the lender interest
a debt evidenced by a “note” loan
decisions made by an individual regarding their money personal finance
anything owned by an individual assets
earnings from work or investments income
state of being obligated according to law liabilites
delayed gratification discipline
detailed proposal for doing or achieving something plan
currency and coin that are legal tender by government money
a written cash flow plan budget
an insistent request made as if by right demand
dividing money a person invests between several types of investments. diversification
quality of an asset that permits it to be converted quickly into cash without loss of value liquidity
payment or concession to stimulate greater output or investment incentive
obligates the borrower to make a predetermined series of payments mortgage
interest paid (daily, monthly and annually) on interest previously earned compound interest
$500 in readily available cash for emergencies only; the goal of the First Foundation emergency fund
percentage paid to a lender for the use of borrowed money; percentage earned on invested principle interest rate
the 5 steps to financial success five foundations
saving money over time for a large purchase sinking fund
a persistent rise in the price of goods and services inflation
recurrent fluctuation in the total business activity of a country business cycle
an accumulated stock of wealth, whether in money of property capital
to bargain or exchange in trade barter
an agreement between two or more parties that limits the action or inaction of each party contract
a specified sum of money covered for by the patient’s insurance copayment
person or firm to whom money is due creditor
investment in stocks, property, or other ventures in hopes of gaining speculation
not having enough paid work or not doing work that makes full use of their skills and abilities underemployed
a sum of money paid to a patentee for the use of a patent royalty
a thing that is wanted or required need
income, especially from a company or organization of a substantial nature revenue
give, put, or send (something) back to a place or person return
the degree of wealth and material comfort available standard of living
a U.S. government agency responsible for collecting taxes and enforcing tax laws IRS

GDP, Inflation and Unemployment Crossword


What does C+I+G+(Export-Imports)=? GDP
What happens to our economy if one sector grows? Grows
What does GDP stand for? Gross Domestic Product
Decrease in general price level of good and services Deflation
Explanation of how inflation is affected by demand Demand-Pull Theory
Shows how the average price of a standard group of goods changes over time Price Index
What does CPI stand for? Consumer Price Index
General price levels rise due to increase in the cost of wages and raw materials Cost-Push Theory
Portion of a loan that is charged as interest to the borrower Interest Rates
Explains cause & effect relationship between raising wages & prices. Wage-Price Spiral

Personal Finance Chapters 1 and 2 Crossword


All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. Personal Finance
An obligation of repayment owed by one party (debtor/borrower) to a second party (creditor/lendor) Debt
A fee paid by a borrower to the lender for the use of borrowed money Interest
The granting of a loan and the creation of a debt; any form of deferred payment Credit
A system by which goods and services are produced and distributed Economy
A person or organization that buys/uses goods or services Consumer
A debt evidenced by a "note," which specifies the principal amount, interest rate, and date of repayment Loan
The knowledge and skillset necessary to be an informed consumer and manage finances effectively Financial Literacy
Interest paid on interst previously earned Compound Interest
An account that generates interest income on the available balance in the account Interest-Bearing
The five steps to financial success Five Foundations
The persistent increase in the cost of goods and services or the persistent decline in the purchasing power of money Inflation
Saving money over time for a large purchase Sinking Fund
A savings account that is set aside to be used only for emergency expenses Emergency Fund
A rate which is either charged (on debt) or paid (on investment accounts) for the use of money Interest Rate

Financial Terms Crossword Puzzle


When you’re investing or saving, this is the interest that you earn on the amount you deposit, plus any interest you’ve accumulated over time. Compoundinterest
A number used by banks and other financial institutions to measure a borrower’s credit worthiness. FICOscore
The difference between your assets and liabilities. networth
The process by which you choose what proportion of your portfolio you’d like to dedicate to various asset classes, based on your goals, personal risk tolerance and time horizon. Assetallocation
Commonly referred to as fixed-income securities. Bonds
The increase in the value of an asset or investment — like a stock or real estate — above its original purchase price. Capitalgains
The process of buying or selling securities over time in order to maintain your desired asset allocation. Rebalancing
Also called equities or shares. Stocks
This is the process of paying off your debt in regular installments over a fixed period of time. Amortization
A type of mortgage in which the interest you pay on your outstanding balance rises and falls based on a specific benchmark. ARM
An account held by an impartial third party on behalf of two parties in a transaction. Escrow
A mortgage that carries a fixed interest rate for the entire life of the loan. Fixed-rate mortgage
Employer-sponsored retirement plans, such as pensions, in which the employer promises a specified retirement benefit based on a formula that may include an employee’s earnings history, length of employment and age. Defined-benefit plans
Companies often use these as management incentives. stockoptions
The payments you make to an insurance company in return for protection from financial losses within the scope of your policy. Premium
Used to determine your taxable income, minus any additional IRS-qualified deductions that you’re eligible to take. AGI
A person who is financially dependent on your income, typically a child or an adult relative you may support. Dependent
A standard amount that can be used to reduce your taxable income if you decide not to itemize your deductions. Standarddeduction
A qualified expense that the IRS allows you to subtract from your adjusted gross income, which further reduces your taxable income. Itemizeddeduction
A type of policy that provides additional liability coverage beyond what your home, auto or boat insurance may provide. Umbrellainsurance

Personal Finance Crossword


Income, especially when of a company or organization and of a substantial nature. Revenue
An estimate of income and expenditure for a set period of time Budget
The proportion of a loan is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding. Interest Rates
Money paid regularly at a particular rate of the use of money lent, or for delaying the repayment of a debt. Interest
The capital raised by a business or a corporation through the issue and subscription of shares. Stocks
A certificate issued by a government or a public company promising to repay borrowed money at a fixed rate of interest at a specified time Bonds
A system of money in general use in a particular country. Currency
Borrow (a sum of money or item of property). Loan
Expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture. Investing
Money received, especially on a regular basis, for work or through investments. Income
Pay out (money) in buying or hiring goods and services. Spending
The money one has saved, especially through a bank or official scheme. Savings
The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. Credit

Chapter 1-3 Crossword Puzzle


A person or organization that uses a product or service Consumer
The granting of a loan and the creation of debt; any form of deferred payment Credit
An obligation of repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the originial loan amount plus interest Debt
A system by which goods and services are produced and distrubuted Economy
The knowledge and skillset necessary to be an informed consumer and manage finances eddfectively FinancailLiteracy
A fee paid by a borrower to the lender for the use of borrowed money Interest
A debt evidenced by a "note" which specifies the principal amount, interest rate and date of repayment Loan
All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. PersonalFinance
Interest paid on interest previously earned; credited daily, monthly, quarterly, or semianually CompoundInterest
Five hundred dollars in readily available cash to be used only the event of an emergency; the goal of the First Foundation EmergencyFund
Percentage paid to a lender for the use of borrowed money (in debt); percentage earned on invested principal (in investing) InterestRate
Saving money over time for a large purchase SinkingFund
A written cash flow plan Budget
A summary that shows total income and spending for a given time period CashFlowStatement
A copy of each check you write CarbonCheck
Series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses. EnvelopeSystem
An item that is bought without previous planning or consideration of long-term effects ImpulsePurchase
Occurs when money is withdrawn from a bank account and the available balance below zero Overdraft
To match your bank statement with your checkbook Reconcile
A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero ZeroBasedBudget

Financial Literacy Crossword


a sum of money that is borrowed and expected to be paid back with interest in a specified time frame Loan
the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets Interest Rate
the annual rate that is charged for borrowing Annual Percentage Rate
a card that allows customers to access their funds immediately from their checking account Debit Card
a card that can be used at a store, restaurant, online, etc. that allows the cardholder to make a purchase immediately but then pay back the money later Credit Card
a card that usually does not charge interest; however it requires the cardholder to pay off his/her balance in full every month Charge Card
contains information about your credit such as loan paying history and the status of your credit accounts. Lenders use these reports to make lending decisions Credit Report
the sense of regret after buying something Buyers Remorse
allows you to track your income and your expenses Budget
a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates Credit Union
an amount of money that you owe to a person, bank, or company Debt

personal finance Word Search

Word Search

net worth
mutual fund
generic brand
consumable good
cash income
cash flow
brand name
bank account
capital gain

How Fiscal Policy Influences Aggregate Demand Crossword


The government's choices regarding the overall level of government purchases and taxes. Fiscal Policy
The reduction in aggregate demand as a result of fiscal expansion raising the interest rate is known as The ________ Effect. CrowdingOut
When _____ is more expensive, demand for residential and business investment goods decline. Borrowing
What will a cut in personal income taxes increase for a household? Takehome pay
What is the name of the 'rule' expressed by this formula? r = p + 0.5y + 0.5(p - 2) + 2 Taylor Rule
The ____ Effect. When the government cuts taxes and stimulates consumer spending, leading to a rise in earnings and profits, which further stimulates consumer spending. Multiplier
Higher income leads to higher money demand which ultimately leads to a rise in ____ ? Interest Rates
The level of government purchases is an important instrument of fiscal policy Taxation
In 2013, in most developed economies, central bank interest rates were historically ____? Low
If households predict a large tax cut to be permanent, they will increase their _____ by a significant amount. spending
As _____ rise, people buy more goods and services and, subsequently, choose to maintain more of their wealth in liquid form. incomes