Economics Final Review

A financial intuition that is owned and operated by members to provide savings accounts and low interest loans is a

• Savings and loan
• Credit union
• Commercial bank
• Savings bank

Amount of money originally borrowed

• Mortgage
• Principal 
• Annual percentage rate (APR)
• Finance company

Cost of credit expressed as a yearly percentage 

• Mortgage
• Principal
• Annual percentage rate (APR)
• Finance company

Something of value used to secure a loan 

• Finance charge
• Unsecured loan
• Collateral
• Interest

Which account type allows you to earn interest?

• checking account

• credit card

• mortgage

• certificate of deposit

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

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

With insurance, a higher deductible means a

• lower premium.

• higher premium.

• free healthcare.

• unlimited liability.

A ___________ is like a loan to a corporation or the government and is a safer investment.

• 401(k)

• bond

• stock

• share

A financial product purchased by many people facing a similar risk to protect against the risk of larger losses

• Premium

• Policy

• Insurance

• Risk

• Deductible