Economics: Personal Finance 4

The amount you pay to use someone else's money. It is also the amount of money you earn when allowing others to use your money.

• Interest
• Late Payment Fee
• Line of Credit
• Minimum Payment

The original amount of money borrowed

• Principal
• Credit History
• Annual Percentage Rate (APR)
• Interest

One of the 3 C's of credit that shows a person's willingness to pay is

• capital

• collateral

• character

• capacity

The amount credit costs, expressed as a yearly percentage.

• periodic rate

• APR

• finance charge

• previous balance

Sharon is 20 years old. She has one gas, two bank, and two department store credit cards. Her application for another credit card has been declined. The probable reason is:

• The total amount she can charge on her cards is more than her ability to repay

• she pays the complete balance each month.

• She is extremely careful about disclosing account information to unsolicited callers.

Dawn graduated from high school and wants to get a credit card. How can Dawn establish credit-worthiness?

• Opening a checking account, making regular deposits, and avoiding penalties for insufficient funds

• Be extremely careful about disclosing account information

• The Truth in Lending Act of 1968

The more credit cards you have, the better.

• True

• False

Student loans impact your credit score.

• Myth
• Fact

John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions enable him to earn MORE interest?

• selecting an account with a higher interest rate
• leaving his money in the account for a long period of time
• transferring money into his checking account each month
• higher interest rate AND leaving money in for a longer time

Tags

CCSS.7.RP.A.3

Restaurant Bill

• Fixed Expense
• Variable Expense