Financial Literacy

Something of value that you own is a(n):

• Credit

• Asset

• Liability

• Deductible

A ____________ is an organization—usually a group of people or a company—authorized by the state to act as a single entity. It is taxed for profits and is liable for any debts or judgments. It is owned by shareholders (individuals or other corporations).

• Real Estate

• Sole Proprietorship

• Corporation

• Business

Funds lent to a business with an agreement that the business will repay the lender with interest is called:

• Credit or Debit

• Interest Rate

• Equity or Capital

• Deductible

A deductible is the amount that an insurance company makes a policyholder pay as part of any claim.

• True

• False

Failure to repay a loan is called:

• Deductible

• Liability

• Obligation

• Default

Equity or capital is funds contributed by investors to a business with an expectation of a significant return on their investment when the business succeeds.

• True

• False

_________ is understanding how individuals and businesses earn money and what they spend money on. Understanding important financial terms. Learning how to create a budget.

• Profit

• Financial Literacy

• Credit Score

• Equity

A creditworthy individual or business with sufficient liquidity that promises to repay a loan in the event that the debtholder can't make a required payment is called a

• Guarantor

• Entrepreneur

• Sole Proprietor

• Partnership

Debt you owe someone that is paid in monthly payments is called

• Insurance Premium

• Installment Payments

• Line of credit

• Mortgage

The individual or business that purchases an insurance policy for various types of protection is called the insurance policyholder.

• True

• False