20191106 - Personal Finance Unit 2 Review

The cost of borrowing money is referred to as 

• Interest 
• Annual Percentage Rate 
• Credit 
• Credit Line 

Credit can be defined as a tool to...

• allow you to purchase things without paying for them

• let you make a quick purchase when you don't have enough money

• provide guilt free money

• to buy something now and pay for it later

Which of the following is true about micro-loans (choose all that apply)?

• They are for small amounts

• They typically must be paid back in a short amount of time

• They are used by both businesses and consumers (regular people)

• They are often available in low-income communities to help reduce poverty

Which of the following statements is true about Debt?

• Debt is the amount of money you have in your checking account.

• Debt is the total amount of money a person owes to others

• Debt is the ability to borrow money.

• Debt is the amount of money you have in a savings account.

Which of the following represents risks of using credit (choose all that apply)?

• Overspending

• Overwhelming Debt

• Legal Action

• Identity Theft and Fraud

Using Credit is never a wise thing to do...

• True

• False

Only adults are at risk for identity theft...

• True

• False

The amount of money you borrow before interest is the....

• Principal

• Interest

• Rate

• Time

What does the "r" in the interest formula stand for?

• Principal
• Interest
• rate
• time

Tags

CCSS.7.RP.A.3

The amount you pay to use the money you borrow is the...

• Principal

• Interest

• Rate

• Time