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Transcript of Personal Finance
history of the borrower;
(credit history) Refers to the cash and assets a business owner
pledges to secure a loan.
Banks require collateral because
they want the business owner
to suffer if the business fails. Refers to capital assets of business;
Includes: Machinery and Equipment for a
manufacturing company, product inventory, store
or restaurant fixtures, and money. Refers to the ability of the business
to generate revenues in order to
pay back the loan; Easiest to determine
if bank has solid cash flow. The profit one makes if
one sells their stock
more than that
person paid for. 2 1 Social Policy Social Welfare Policies Food Stamps
Taxes Provide money for the Social Welfare Programs. Social Insurance
Programs Social Security
Medicare People put money into the program
that pays for current members in
the hopes that someone will be
paying to support them when they
retire. Social Security Provides benefits
elderly Medicare Medicaid Provides
to those too poor
to afford it Economic Policy Fiscal Year 2012 October 1, 2011 TO September 30, 2012 Uncontrollabes 60-70%
of the budget Entitlement Programs Mandatory spending
to benefit only certain qualified persons Incrementalism The budget only
changes a little
year to year Budget Procedure The House and Senate Budget Committees and the Congressional Budget Office
work on the 1st concurrent budget resolution by May 15, and the 2nd by September 15.
Congress then passes appropriation bills. Obama wrote 2012
and proposed to Congress
in January 2011 Chapter Temporary Assistance for Needy Families