Dave Ramsey Chapter 1 Test Prep

Front

What is the granting of a loan and the creation of debt?

Back

Credit

Front

What is the percentage of principal charged by the lender for the use of its money?

Back

Interest Rate

Front

What is anything that is owned by an individual or family, including money, investments, collectibles, autos, etc.?

Back

Asset

Front

What is it called when the dollar value of a person's assets is greater than the dollar value of their liabilities?

Back

Positive Net Worth

Front

What is the total wealth of a person/family taking into account all of their assets and liabilities?

Back

Net Worth

Front

What is a financial tool that allows individuals to borrow money up to a certain limit?

Back

Credit Card

Front

What is the term for the amount of money that is owed to creditors?

Back

Liability

Front

What is the term for the difference between total assets and total liabilities?

Back

Net Worth

Front

What is the term for a situation where a person cannot pay their debts?

Back

Bankruptcy

Front

What is the term for the amount of money that a borrower must pay back in addition to the principal?

Back

Interest