APMacro: PF Financial Planning Review



Earning income: gross pay, net pay, taxes; income: paycheck, parents, holiday/gift, selling; goal setting: SMART goals, short-term, intermediate, long-term; budgeting: income, fixed expenses, variable expenses; financial institutions: banks, savings and loans, credit unions; insurance: auto, home/renters, health, disability, life; risk: financial, market, liquidity, inflation, fraud; saving: passbook, certificate of deposit, money market; investing: bonds, mutual funds, stocks, real estate, collectibles; and entrepreneurship: start business, buy assets, make investments.

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Gov: Bill Becomes a Law



Private bills and public bills are introduced in Congress. Private bills deal with individual people or places, often involving claims against the government. Public bills deal with general matters and apply to the entire nation, such as tax cuts, gun control, and civil rights. Congress can also pass resolutions to make policy. A simple resolution covers matters affecting only one house of Congress and is passed by that house alone. It does not have the force of law. A joint resolution is passed in the same form by both houses and must be signed by the president to become law. Concurrent resolutions cover matters in both houses, and do not become law.

Earmarks are a way that members of Congress can specify that some part of a funding bill will go toward a certain purpose. Bills sometimes have riders attached, which are provisions on subjects other than the one covered in the bill.

After a bill is introduced, it is sent to the committees that deal with the subject. If a committee decides to act on a bill, it holds hearings. After the hearings are over, the committee meets in a markup session to decide what changes to make to the bill. After all the changes have been made, the committee votes either to kill the bill or to report it to the House or Senate for action. The bill is then debated on the floor, followed by a vote. To become law, a bill must pass both houses of Congress in identical form. A conference committee works out any differences between versions of the same bill. Then the bill is sent to the president, who signs it into law or rejects it with a veto. Congress can override a president’s veto with a two-thirds vote in both houses.

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APMacro: PF Financial Planning Review



Income: paycheck, parents, holiday/gift, selling; Goal setting: SMART goals, short-term, intermediate, long-term; budgeting: income, fixed expenses, variable expenses; financial institutions: banks, savings and loans, credit unions; insurance: auto, home/renters, health, disability, life; risk: financial, market, liquidity, inflation, fraud; saving: passbook, certificate of deposit, money market; investing: bonds, mutual funds, stocks, real estate, collectibles; and entrepreneurship: start business, buy assets, make investments.

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Gov: Congressional Committees


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Both the House and Senate depend upon committees to consider the thousands of bills that are proposed each session. Committees are the key power centers in Congress. Lawmakers in committees listen to supporters and opponents of a bill, work out compromises, and decide which bills will or will not have a chance to become law. Through public hearings and investigations, committees bring issues and problems to the public. Congress has four basic kinds of committees: (1) standing committees, each with several subcommittees that specialize in a subcategory; (2) select (or temporary) committees; (3) joint committees made up of House and Senate members; and (4) conference committees that resolve differing versions of a House and Senate bill.

Assignment to the “right” committee can help congressional careers, putting members in a position to act on bills important to their constituents, to influence national policies, and to influence other members in Congress. Party leaders in both the House and Senate have the job of assigning members to a limited number of standing committees and subcommittees. The chairpersons of standing committees are the most powerful people in Congress.

A law starts as a bill, which is introduced and sent to the appropriate committee for study, discussion, and review. Bills that survive committee review are put on one of the five House calendars. The House Rules Committee then decides whether to move the bill ahead, hold it back, or stop it completely.

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Memorial Day


Memorial-Day
Memorial Day is a United  States federal holiday which occurs every year on the final Monday of May. Memorial Day is a day of remembering the men and women who died while serving in the United States Armed Forces. Formerly known as Decoration Day, it originated after the American Civil War to commemorate the Union and Confederate soldiers who died in the Civil War. By the 20th century, Memorial Day had been extended to honor all Americans who have died while in the military service.

APMacro: PF Investing



We invest money in everything from rare coins to real estate because we expect a favorable financial return in the future. However, not all investments turn out as we hope and expect. Nearly every kind of investment involves some sort of risk. For example, the price of rare coins or houses can go down as well as up. Risk is inherent in all investments. Some risks are ones investors cannot control. Other risks can be managed. Generally, there is a strong relationship between risk and reward. The higher the potential reward an investment offers, the higher the risk of losses rather than gains. Given that relationship, there is no free lunch in investing. Investors who choose low risk may earn meager returns. Investors who seek higher returns through high-risk investments may suffer big losses. The key is to develop a risk/reward ratio with which you are comfortable. Therefore, in choosing what to invest in it is important to weigh the various risks against the potential rewards. Today, students will learn about the five types of risk, and compare the risks and rewards associated with several frequently-used investment vehicles.

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People save and invest their money to receive a return on their savings or investment. We will call any type of saving or investing an “investment.” The return is the income earned from the investment; it is usually calculated on a yearly or annual basis. That return can be stated as a percentage of the amount invested. Then it is called the annual rate of return.

Risk comes from the uncertainty about whether you will receive the promised return. The greater the risk you take with your investment, the higher the potential rate of return. Unfortunately, with more risk, it is also more likely that you will lose money. In other words, you can expect a return from taking risks with your money, but you could also take a financial loss. As with any economic decision, there is no free lunch in deciding about investments. Here are some of the risks you take when you invest your money.

Financial risk is the risk that the business or government that you have invested in will not be able to return your money—much less pay a rate of return.

Market risk is the risk that the price of an investment will go down. This doesn’t usually happen to money saved at a bank, savings and loan association, or credit union. However, the prices of stocks, bonds, and mutual funds are determined by supply and demand, and they do go down as well as up.

Liquidity is the ability to turn your money into cash or spendable funds.

Inflation can decrease the value of your investment. People invest money today in order to have that money, and more, available to spend in the future. The goal is to receive the original investment back plus a return, so that you will be able to buy more in the future.

Investment fraud occurs in securities and savings schemes that are misrepresented. In these cases, information about the investment is designed to deceive investors.

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Gov: Congressional Leadership


Congressional Leadership
Congress is a fragmented institution. It has no single leader; rather, the House and Senate have separate leaders, neither of whom can presume to speak for the other chamber. The principal party leaders of Congress are the Speaker of the House and the Senate majority leader. They share leadership power with committee and subcommittee chairpersons, who have influence on the policy decisions of their committee or subcommittee.

The main task of each house in Congress is to make laws. The committees of Congress perform most legislative activity. The majority party in both the House and Senate gets to select the leaders of that body, control the flow of legislative work, and appoint the chairs of all the committees. The Speaker of the House has great power presiding over House sessions.

Leadership in the Senate closely parallels leadership in the House, but the Senate has no Speaker. The vice president presides but cannot vote except to break a tie. The majority party leader steers the party’s bills through the Senate. The minority leader critiques the majority party’s bills and keeps his or her own party united. Senate leaders control the flow of bills to committees and to the floor.

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