APF Final Exam Review 1

Which of the following statements best defines Opportunity Cost?

• What you can obtain for an item at a later time

• How helpful an item is given the context of a current situation

• How well something satisfies a person's wants or needs

• What we lose by giving up the other provided choice

A card that borrows money but it has to be paid back

• Debit Card 
• Credit Card 
• Baseball Card 
• Pokemon Card 

A card that uses money directly from your bank account

• Debit Card 
• Credit Card 
• Pokemon Card 
• Baseball Card 

The maximum amount the lender is willing to make available to the borrower.

• Credit Limit
• Credit History
• Creditor
• Debit Limit 

An agreement between a borrower and a lender, where the borrower agrees to repay money with interest over time.

• Loan 
• Interest 
• Income 
• Deposit  

A mortgage is used for ...

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

Cost of credit expressed as a yearly percentage 

• Mortgage
• Principal
• APR
• Finance company

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

A mutual fund allows investments to be ___________.

• Secured
• Guaranteed
• Diversified
• Minimal