Personal Finance Vocab Quiz Part 2

A company that lends customers small amounts of money at high interest rates, on the agreement that the loan will be repaid when the borrower receives their next paycheck is called?

• mutual funds

• prepaid card

• payday lender

• retirement accounts

An _________ ___ is what a bank charges you any time you withdraw more money from your account than what you have in it.

• variable interest rate

• fixed interest rate

• cryptocurrency

• overdraft fee

______________ is a digital currency, which is an alternative form of payment created using encryption algorithms.

• prepaid card

• cryptocurrency

• bonds

• stocks

________ _________ is when you earn interest on both the money you've saved and the interest you earn.

• overdraft fee

• simple interest

• compound interest

• annual percentage rate

_____ ____ savings will typically be spent within 5 years for things such as emergencies, weddings, rent payment, etc.

• stocks

• short term

• long tern

• bonds

What is a company that brings together money from many people and invests it in stocks, bonds or other assets called?

• mutual funds

• payday lenders

• credit union

• simple interest

An interest rate that adjusts over time in response to changes in the market is called a?

• long term savings

• variable interest rate

• fixed interest rate

• retirement account

An account set up at a financial institution that allows an individual to save for retirement with tax-free growth is a __________ ________?

• credit union

• mutual fund

• retirement account

• stocks

Which is a type of lender that uses your vehicle title as collateral to secure your loan?

• overdraft fee

• stocks

• title pawn lender

• payday lender

A _____ is an investment that represents a share, or partial ownership, of a company.

• bond

• stock

• mutual fund

• retirement account