Personal Finance Ch. 1

Expensive houses and new cars are a true indication of wealth.

• True

• False

A person or organization that uses a product or service.

• borrower

• debtor

• consumer

• creditor

An obligation of repayment owed by one party to a second party.

• debt

• ownership

• rental

• credit

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

• bills

• debts

• interest

• principal

Which of the following things cannot be done with a debit card but can be done with a credit card?

• Go in to debt

• Rent a car

• Purchase something online

• Purchase an airline ticket

What is a liability?

• Money you owe; a debt

• Something that loses value over time

• Money in your savings account

• Something you own and has value

The measurement of a person's total dollar value of assets minus any liabilities they have is called their ___________

• Liabilities

• Insurance

• Wealth

• Net Worth

A spending plan is called ______________

• Scarcity

• Debt

• an account

• a budget

The condition of having unlimited wants but limited resources is called

• economy

• scarcity

• global demand

• selfishness

All financial decisions an individual or family must make in order to earn, budget, save, and spend money over time is known as

• financial aid

• cash flow

• personal finance

• investments