Lifetime Vocab Pre-test

Money borrowed from a bank.

• debt

• loan

• budget

• expense

The fee for borrowing and using someone else's money.

• expense

• interest

• interest rate

• income

A plan for future spending and saving, weighing estimated income against estimated expenses.

• income

• cost comparison

• budget

• cost benefit analysis

Money owed, usually as a result of borrowing.

• debt

• expense

• income

• interest

A mortgage is used for ...

• Buying a new machine
• Buying a new vehicle
• Buying land or premises
• Paying staff wages

This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.

• compound

• simple

• annual

This term refers to the original amount of a loan OR the original amount of money invested. 

• Principal
• Interest
• Rebate
• Fixed Rate

Which budget item will most likely take up the largest percentage of your income at 25-30%?

• transportation

• housing

• groceries

• saving/investing

What is this called?

• A Check

• A credit card

• A debit card

• Money Order

True/False:

Using a credit card takes money out of your bank account.