GFL State Review #11

Front

An asset, such as a home or a car, pledged by a borrower that a lender accepts as security against a loan in case the borrower for any reason cannot pay back the loan.

Back

collateral

Front

A person or company to whom money is owed.

Back

Creditor

Front

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Back

Interest Rate

Front

What type of financial aid needs to be repaid? Options: Grant, Scholarship, Work-study, Loan

Back

Loan

Front

What account is a good idea if you are in a lower tax bracket than you will be at retirement?

Back

Roth IRA

Front

What type of account allows for instant diversification?

Back

mutual fund

Front

Investment vehicle used by non-profit companies, religious groups, school districts and government organizations is a

Back

403b

Front

Which of the following statements is TRUE about the advantages of federal student loans compared to private student loans? Options: Federal student loans generally offer higher interest rates which remain fixed over the term of the loan, Federal student loans do not need to be repaid if the borrower runs into financial difficulty and goes bankrupt, Federal student loans require a credit check, Federal student loans offer more flexible repayment terms

Back

Federal student loans offer more flexible repayment terms

Front

Why should you file the FAFSA as early as possible?

Back

Aid is given out on a first-come, first-serve basis

Front

Company car, relocation expenses, and employee discounts are:

Back

Perks