Personal Finance Literacy

When choosing a financial investment, three important criteria to consider are...

• size, taxes, and risk
• risk, rate of return, and liquidity
• collateral, liquidity, and dividends
• size, collateral, and rate of return

A loan made by a person to a business or government...

• dividends
• stocks
• bonds
• money

A person's credit rating is defined by all of the following EXCEPT...

• past payment history
• number of owned stocks
• length of credit history
• debt to income ration

The annual percentage rate (APR) is...

• the amount of credit a customer has available for use each year.
• the interest rate earned per year for the use of a credit card.
• the interest rate charged per year for the use of a credit card.
• the amount of money a customer has paid to the credit card company.

What does a credit bureau (Experian, Equifax, TransUnion) do?

• extend credit to qualified buyers
• check credit applications for accuracy
• track the bill-paying habits of customers and calculate credit scores
• issue credit to customers who apply

The price associated with using someone else's money is...

• interest or finance charge
• lending 
• borrowing
• trading

The smallest payment a person is required to make in a given month on an open credit account is the...

• entire balance
• minimum payment
• installment payment
• incremental payment

The interest paid on unpaid credit balances is the...

• finance charge
• minimum balance
• installment payment
• minimum charge

Which is the most costly and least desirable payment for a revolving balance account such as a credit card?

• paying only the minimum monthly payment
• paying more than the minimum monthly payment
• paying the entire balance every month
• paying a flat $25 monthly payment

What is a general relationship between risk and return?

• there is a relationship, but it is uncertain
• there is no relationship between risk and return
• the higher the risk, the lower the potential return
• the higher the risk, the higher the potential return