personal finance economics
Terms
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- bond
- This is a contract to repay borrowed money, often issued by a company. This issues financial security for a debt.
- risk
- The potential that an investment will lose money.
- unskilled labor
- workers who are not trained to do a specific task or operate specialized machinery
- professional
- A worker with a high level of specialized training or education that is almost always formalized.
- sales tax
- This is a tax on goods and services, a percentage of the retail price.
- compound interest
- This is a method of calculating interest in which the interest is added to the principal each period so that the principal continues to grow throughout the life of the loan or investment. The formula is A = C * (1 + r/100)n where A is the future value, C is the principal, r is the interest rate per period, and n is the number of periods.
- simple interest formula
- The formula I = prt, where p stands for principal, r represents rate, and t represents time in years.
- disability insurance
- A type of insurance paid to an individual if he/she is injured and is unable to work for a specified length of time.
- current yield
- The annual interest rate paid by a bond. It does not reflect the interest rate paid over the life of the bond.
- return
- The profit or loss derived from an investment.
- property tax
- This tax is locally assessed, varies according to the worth of land and goods on it, and generally funds things like public schools.
- excise tax
- This is a tax on production, transportation, sale or consumption of a certain good or service.
- proportional tax
- This is a type of taxation that takes the same percentage of one's income regardless of how much or how little one makes.
- stock
- a share of ownership in a corporation
- regressive tax
- This is a type of taxation that takes a higher percentage of one's salary as one's income decreases.
- money market
- A type of checking account that also earns interest. These accounts generally have a higher minimum balance.
- skilled labor
- Labor with a high level of training, education, and experience.
- incentive
- Any factor, usually financial, to influence once choice over another by an individual or business.
- stock
- Certificate of ownership in a company which entitles the shareholder to vote for the board of directors of the corporation.
- inflation
- a rise in the general level of prices
- life insurance
- A special type of insurance paid to family or primary beneficiary at the time of death of the policy holder.
- income tax
- This is a tax levied on net personal or business income.
- progressive tax
- a tax where the percentage paid in tax increases as the level of income rises
- earnings
- This is a payment usually of money for labor or services usually according to contract and on an hourly basis.
- insurance
- A form of risk management purchased by a business or individual against a possible financial loss paid in the form of a monthly or annual premium.
- semi-skilled labor
- Workers that may master a specific job with a few weeks of limited training.
- interest
- This is a fixed charge for borrowing money; usually a percentage of the amount borrowed.
- lender
- The institution or individual that loans money to an individual or business at a set interest rate over a set period of time.
- ira
- This is special savings account created for an individual to spend when the person stops employment completely. It often has many tax advantages over a regular savings account.
- interest rate
- The percentage of a financial loan which is paid as a fee over a period of time.
- mutual fund
- A collection of investments, usually stocks, bonds, and other securities managed by a portfolio manager. The collective investment gains or loses value as a group. Generally the group of items spread the risk of items purchased individually. The net proceeds are passed to the individual investors.