Personal Finance ACP Review 3

Front

What term describes the benefit missed or given up when making a choice?

Back

Opportunity cost

Front

A bad credit score can affect your ability to: Sell a home to the right consumer, Earn a livable wage as an adult, Get better loans for homes/big purchases, Acquire more debt

Back

Get better loans for homes/big purchases

Front

In a loan, the ______ is the original amount borrowed and the ______ is the fee charged for borrowing.

Back

Principal, Interest

Front

An asset, such as a house or car, that a lender accepts as security for a loan is called

Back

Collateral

Front

A tax imposed by a government on goods and services imported from other countries is called a

Back

Tariff

Front

Financial aid provided by the government to a business so that the price of a service or commodity may remain low is called a

Back

Subsidy

Front

Competition is important in an economic system because it drives prices ____ and the quality ____.

Back

down, up

Front

_______ are stocks that represent partial ownership in corporations

Back

equities

Front

_______ = a formal contract to repay borrowed money with interest on the borrowed money at regular future intervals (periods of time)

Back

bond

Front

____________ is the privately owned, publicly controlled central bank of the U.S.; manages monetary policy (affect smaller banks)

Back

The Federal Reserve System (FED)