AP Macroeconomics Unit 4
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Other
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12th Grade
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Practice Problem
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Hard
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1.
FLASHCARD QUESTION
Front
The cost of borrowed money, usually expressed as a percentage.
Back
interest
2.
FLASHCARD QUESTION
Front
Amount of money originally borrowed
Back
Principal
3.
FLASHCARD QUESTION
Front
What does CD stand for when talking about investments?
Back
Certificate of Deposit
4.
FLASHCARD QUESTION
Front
This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.
Back
debt
5.
FLASHCARD QUESTION
Front
The availability of money; how quickly you can convert it into cash in your hand is its _______.
Back
liquidity
6.
FLASHCARD QUESTION
Front
Who pays interest on a loan?
Back
The borrower
7.
FLASHCARD QUESTION
Front
Who pays interest when you deposit money in the bank?
Back
The bank
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