1. PERSONAL FINANCE TEST H

2. CLOSED END CREDIT InvestorWords.com closed-end credit Hide links within definitionsShow links within definitions Definition Credit which is to be repaid in full (along with any interest and finance charges) by a specified future date. Most real estate and auto loans are closed-end.Creditfullinterestfinance chargesreal estateloans

3. ROTH IRA A new type of IRA, established in the Taxpayer Relief Act of 1997, which allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free. Taxes are paid on contributions, but withdrawals, subject to certain rules, are not taxed at all.IRA Taxpayer Relief Act of 1997 taxpayerssubject toincome limitsretirement savingsTaxespaidcontributionssubjectrulestaxed

4. ROTH IRA Contributions to the Roth IRA are invested in mutual funds, stocks, or other securities, and the amount that someone is able to contribute is dependent upon their income, age, and tax filing status. Unique features of a Roth IRA are that it does not require you to start making withdrawals at a certain age, and also it allows an individual to make a qualified withdrawal up to $10,000 for a first time home purhcase.mutual fundsstockssecuritiesamountabledependentincometaxfiling statusfeaturesindividualqualifiedwithdrawal

5. IRA InvestorWords.com IRA Hide links within definitionsShow links within definitions Definition Individual Retirement Account. A tax-deferred retirement account for an individual that permits individuals to set aside money each year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). The exact amount depends on the year and your age. IRAs can be established at a bank, mutual fund, or brokerage. Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA.Individual Retirement Accounttax-deferredretirementaccountindividualpermitsmoneyearningswithdrawalspenaltyamountbankmutual fundbrokeragepension planworkincome guidelinesdeductiblecontributionsIRA

6. All others can make contributions to an IRA on a non-deductible basis. Such contributions qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn. A participant is able to roll over a distribution to another IRA or withdraw funds using a special schedule of early payments made over the participant's life expectancy.deductionand interest fundsableroll overdistribution withdrawschedulepaymentslife expectancy

7. ZERO CUPON BOND A bond which pays no coupons, is sold at a deep discount to its face value, and matures at its face value. A zero-coupon bond has the important advantage of being free of reinvestment risk, though the downside is that there is no opportunity to enjoy the effects of a rise in market interest rates. Also, such bonds tend to be very sensitive to changes in interest rates, since there are no coupon payments to reduce the impact of interest rate changes.bondpayssold deep discountface valuevaluefree reinvestment riskdownsideopportunitymarket interest rateschangesinterest ratescouponpaymentsimpactinterest rate

8. ZERO CUPON BOND In addition, markets for zero-coupon bonds are relatively illiquid. Under U.S. tax law, the imputed interest on a zero-coupon bond is taxable as it accrues, even though there is no cash flow.additionilliquidUtax lawimputed interesttaxableaccruescash flow

9. DEPOSIT $10K OR MORE FEDERAL GOVERNMENT REQUIRES REPORTED TO TREASURY DEPT AVOID TAX EVASION ON ILLEGAL GAINS

10. TREASURY DEPT The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue. The Department is administered by the Secretary of the Treasury, who is a member of the Cabinet.executive departmenttreasuryUnited Statesfederal governmentAct of CongressrevenueSecretary of the TreasuryCabinet The first Secretary of the Treasury was Alexander Hamilton, who was sworn into office on September 11, 1789. Hamilton was asked by President George Washington to serve after first having asked Robert Morris (who declined, recommending Hamilton instead).Alexander HamiltonPresidentGeorge WashingtonRobert Morris