Key Terms |
#1 |
All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. |
What is Personal Finance? |
#2 |
A fee paid by a borrower to the lender for the use of borrowed money; typically calculated as a percentage of the principle (original loan amount). |
What is Interest? |
#3 |
The knowledge and skillset necessary to be an informed consumer and manage finances effectively. |
What is Financial Literacy? |
#4 |
A person or organization that uses a product or service |
What is a Consumer? |
#5 |
An obligation of repayment owed by one party (the borrower) to a second party (creditor/lender); in most cases this includes repayment of the original loan amount plus interest. |
What is Debt? |
Money, the American Way |
#1 |
This was created in 1933 to restore public trust in banks and encourage stability in the financial system through the promotion of sound banking practices and insuring deposits of up to $250,000 per institution as long as the bank is a member. |
What is the Federal Deposit Insurance Corporation (FDIC)? |
#2 |
Established in 1933, its purpose was to refinance home mortgages in default to prevent foreclosure. |
What is the Home Owners' Loan Corporation (HOLC)? |
#3 |
U.S. government agency that insures loans made by banks and other private lenders for home building and home buying. It was created as part of the National Housing Act of 1934. |
What is the Federal Housing Authority (FHA)? |
#4 |
As part of the Tennessee Valley Authority (TVA), this agency purchased inexpensive electrical appliances and then made them available to working people through installment loans with a typical repayment period of three to four years. In an attempt to reduce farm foreclosures, loans were made available to farmers under this agency. These loans were used to refinance farm mortgages or provide capital ($) for agricultural production. |
What is the Electric Home and Farm Authority (EHFA)? |
#5 |
FHA |
What is Federal Housing Authority? |