PERSONAL FINANCE

1
PERSONAL FINANCE

• EXAM G

2
CHECKCASH STORE

• A payday loan (also called a paycheck advance) is
  a small, short-term loan that is intended to
  cover a borrower's expenses until his or her next
  payday. The loans are also sometimes referred to
  as cash advances, though that term can also refer
  to cash provided against a prearranged line of
  credit such as a credit card (see cash advance).
  Legislation regarding payday loans varies widely
  between different countries and, within the USA,
  between different states.

3
BUDGET VARIANCE

• A standard budget is a list of goods and
  services that a family of a specified size and
  composition would need to live at a designated
  level of well-being, together with the costs of
  those goods and services. Considerable work on
  standard budgets has been done in the United
  States and other countries in recent years,
  mostly by non-government analysts. Budgets have
  not been used to develop official poverty lines,
  and in most cases have not been used to calculate
  the size of a nations low-income population.
  OVERTIMENYCSNOW

4
FEDERAL RESERVE

• Events such as the Great Depression were major
  factors leading to changes in the system.5 Its
  duties today, according to official Federal
  Reserve documentation, are to conduct the
  nation's monetary policy, supervise and regulate
  banking institutions, maintain the stability of
  the financial system and provide financial
  services to depository institutions, the U.S.
  government, and foreign official institutions.6

5
OPPORTUNITY COST

• A person who has 15 can either buy a CD or a
  shirt. If he buys the shirt the opportunity cost
  is the CD and if he buys the CD the opportunity
  cost is the shirt. If there are more choices than
  two, the opportunity cost is still only one item,
  never all of them.
• A person who invests 10,000 in a stock denies
  herself or himself the interest that could have
  accrued by leaving the 10,000 in a bank account
  instead. The opportunity cost of the decision to
  invest in stock is the value of the interest.