Unit 2: Personal Saving and Investing
Objectives:
Optional Homework for Unit 2
Read pages 195-199; Answer section 1; Review on page 199 #'s 1-6
Read pages 214-218; Answer section 4; Review #'s 1-5
- Types of income.
- What is given up for each type of income?
- What is the difference between gross income, disposable income, and discretionary income?
- What is a warranty?
- What is a credit bureau?
- What factors are considered when deciding whether to grant credit?
- What are the different types of loans?
- What are the advantages and disadvantages of each source of loans?
- What is the cost of credit?
- What is the difference between APR and finance cost?
- What makes up a loan payment and in what order is it paid?
- What is dollar cost averaging and what are the benefits of dollar cost averaging?
- What are the different types of stock exchanges and which types of stocks tend to trade on which exchange?
- What is a stock?
- What are each of the following when referring to a stock?
- P/E ratio
- Dividend
- Yield
- selling short
- Bull market
- Bear market
- Blue chip
- market capitalization
- buying on margin
- What is a bond?
- What is a yield on a bond?
- Which way does the price of a bond go when interest rates change?
- What are mutual funds?
- What are advantages and disadvantages of mutual funds?
- What is the rule of 72 and how does it work?
- What is an IRA?
- What is the difference between a traditional IRA and a Roth IRA?
- How to read a stock table in the financial section of the newspaper?
- What is the purpose of insurance?
- What is a deductible on an insurance policy and how does increasing or decreasing the deductible affect the premiums?
- What is Liability Insurance?
Optional Homework for Unit 2
Read pages 195-199; Answer section 1; Review on page 199 #'s 1-6
Read pages 214-218; Answer section 4; Review #'s 1-5