FHS ECO -Unit 5 Vocabulary Quiz

What is the definition of investment?

• Providing money or capital to an enterprise with the expectation of making a financial gain

• Interest which is calculated on the initial principle and on the accumulated interest

• A number based on an individual's credit history that indicates how much of a credit risk he may be

• The relationship between the risk of an investment and the expected return of the investment

What is compound interest?

• Providing money or capital to an enterprise with the expectation of making a financial gain

• Interest which is calculated on the initial principle and on the accumulated interest

• A number based on an individual's credit history that indicates how much of a credit risk he may be

• The relationship between the risk of an investment and the expected return of the investment

What is a credit score?

• Providing money or capital to an enterprise with the expectation of making a financial gain

• Interest which is calculated on the initial principle and on the accumulated interest

• A number based on an individual's credit history that indicates how much of a credit risk he may be

• The relationship between the risk of an investment and the expected return of the investment

What is the risk/return relationship?

• Providing money or capital to an enterprise with the expectation of making a financial gain

• Interest which is calculated on the initial principle and on the accumulated interest

• A number based on an individual's credit history that indicates how much of a credit risk he may be

• The relationship between the risk of an investment and the expected return of the investment

What is interest?

• Providing money or capital to an enterprise with the expectation of making a financial gain

• Interest which is calculated on the initial principle and on the accumulated interest

• A number based on an individual's credit history that indicates how much of a credit risk he may be

• The relationship between the risk of an investment and the expected return of the investment

What is open end credit?

• A line of credit that can be used repeatedly, within an established borrowing limit

• A loan for a set amount that requires regular payments at certain intervals

• A loan that is obtained by offering an asset as collateral to ensure repayment of the loan

• A loan that is obtained without the use of collateral

What is closed end credit?

• A line of credit that can be used repeatedly, within an established borrowing limit

• A loan for a set amount that requires regular payments at certain intervals

• A loan that is obtained by offering an asset as collateral to ensure repayment of the loan

• A loan that is obtained without the use of collateral

What are secured loans?

• A line of credit that can be used repeatedly, within an established borrowing limit

• A loan for a set amount that requires regular payments at certain intervals

• A loan that is obtained by offering an asset as collateral to ensure repayment of the loan

• A loan that is obtained without the use of collateral

What are unsecured loans?

• A line of credit that can be used repeatedly, within an established borrowing limit

• A loan for a set amount that requires regular payments at certain intervals

• A loan that is obtained by offering an asset as collateral to ensure repayment of the loan

• A loan that is obtained without the use of collateral

What is a budget?

• An itemized plan of income and expenses for a given period of time

• A loan for a set amount that requires regular payments at certain intervals

• A loan that is obtained by offering an asset as collateral to ensure repayment of the loan

• A loan that is obtained without the use of collateral