Final Review

Front

What is the minimum payment on a credit card?

Back

A percentage of the balance.

Front

What is the formula to calculate simple interest?

Back

Front

What is the impact of inflation on savings?

Back

Decreases purchasing power.

Front

What is the advantage of using a credit card responsibly?

Back

Building a good credit history.

Front

Which of the following is a fixed expense?

Back

Rent.

Front

Define 'fixed expense'.

Back

An expense that does not change with the level of goods or services produced, such as rent.

Front

Define 'variable expense'.

Back

An expense that varies with the level of output, such as groceries.

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal and also on the accumulated interest.

Front

What is a credit score?

Back

A numerical expression of a person's creditworthiness, based on credit history.

Front

What is the purpose of a budget?

Back

To plan and control financial resources.