Topic 5 Personal Finance MMA

Front

What is a debit card?

Back

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.

Front

Is budgeting important for financial success?

Back

True, budgeting is critical to financial success and wealth building.

Front

What is better when taking out a loan: daily or quarterly compounding interest?

Back

Quarterly - so you owe money less frequently.

Front

What is a mortgage?

Back

A loan to purchase a home or other real estate.

Front

If interest is compounded quarterly, what is 'n'?

Back

4.

Front

What is a credit card?

Back

A card that allows the cardholder to borrow funds to make purchases, with the obligation to pay back the borrowed amount plus interest.

Front

What is the purpose of a budget?

Back

To plan and track income and expenses to achieve financial goals.

Front

What is the difference between a secured and unsecured loan?

Back

A secured loan is backed by collateral, while an unsecured loan is not.

Front

What is interest?

Back

The cost of borrowing money, usually expressed as a percentage of the principal.

Front

What is the principal in a loan?

Back

The original sum of money borrowed or invested, excluding interest.