Econ Personal Finance

The cost of borrowed money, usually expressed as a percentage.

• interest
• savings plan
• scarce
• purchase

401(k), IRA, and Roth IRA are all examples of a __________ account.

• Retirement
• College Savings
• Low Interest
• Stock

What is a credit score?

• a three-digit score that tells lenders how much money you make each year.

• A five-digit numerical rating that reflects how likely you are to repay your debt.

• A three-digit numerical rating that reflects how likely you are to repay your debt.

• A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts

What is a budget?

• A plan for how money will not be used

• A plan for how money will be used

• The amount you spend

• The amount you save

What is income?

• The amount you spend

• The amount you don't save

• Money taken in

Edward wants to develop a positive credit history.  How should he do this?

• maintain reasonable amounts of available credit
• Open credit accounts in his parents' names
• Have one type of credit account
• Pay cash for the majority of purchases

Khalaja is 18 years-old and has applied for credit for the first time.  Her credit application was declined because she has no credit history. What would you recommend Khalaja to do to begin to build a positive credit history?

• Khalaja should re-apply for the same credit but include a letter of recommendation from someone who knows her well and can vouch for her character
• Khalaja should apply for a different type of credit .  Since she was applying for a bank loan, she should apply for a credit card.
• Khalaja should obtain a secured credit card.
• Khalaja should acquire several credit cards to establish that she can manage them responsibly.

A fee paid by a borrower to the lender for the use of borrowed money.

• bills

• interest

This type of business is owned by one person.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise