Financial Literacy Flashcard

Front

Which of the following best describes the concept of APR? Options: Summary of all credit card transactions in one month, The maximum amount one can charge on their credit card, The fee charged if a credit card payment is late, The credit card interest rate, calculated on a yearly basis

Back

The credit card interest rate, calculated on a yearly basis

Front

A certificate of deposit (CD) differs from a traditional savings account in what way?

Back

CDs must remain untouched for a fixed period of time

Front

When one receives a product or service now, but pays for it later, it is known as what?

Back

Credit

Front

All the following are examples of installment loans EXCEPT: Car loan, Mortgage, Student loan

Back

Credit card

Front

Which type of mortgage loan helps individuals who may have a low credit score, little cash available for a down payment, and could be a first-time home buyer? Options: Adjustable-rate loan, Fixed-rate loan, Government-insured loan, Jumbo loan

Back

Government-insured loan

Front

Which of the following practices does not lead to a higher car insurance rate?
Crash one’s car,
Purchase a newer model car,
Receive a speeding ticket

Back

Participate in a defensive driving course

Front

Which of the following is the term for a person who relies on someone else financially? Beneficiary, Dependent, Insurer, Policyholder

Back

Dependent

Front

When planning one’s personal budget, a variable expense is what?

Back

An expense that may change in amount from month to month

Front

The Rule of 72 is used to calculate what?

Back

The amount of time it will take for an investment to double in value

Front

When one party to a contract does not do what the contract requires, the individual has committed a what of the contract?

Back

Breach