Econ Unit 3 Lessons 1,2 Vocabulary Activity

What is money that is borrowed or owed?

• loan

• compound interest

• credit

• debit

Answer explanation

Money that is borrowed or owed is referred to as a loan, making it the correct choice among the options provided.

What is a record of a borrower's responsible repayment of debts?

• credit history

• fiat money

• M1 Currency

• M2 Currency

Answer explanation

A credit history is a record of a borrower's responsible repayment of debts, making it the correct choice in this context.

What is a physical or intangible asset that has value?

• asset

• bank note

• bond

• budget

Answer explanation

An asset is a physical or intangible item that holds value, making it the correct choice in this context.

What is a debt investment in which an investor loans money to an entity?

• asset

• bank note

• bond

• budget

Answer explanation

A debt investment in which an investor loans money to an entity is known as a bond, making it the correct choice among the options provided.

What is an arrangement to receive goods, services, or money now and pay for them in the future?

• loan

• compound interest

• credit

• debit

Answer explanation

An arrangement to receive goods, services, or money now and pay for them in the future is known as credit.

What is an estimate of income and expenditure for a set period of time?

• asset

• bank note

• bond

• budget

Answer explanation

An estimate of income and expenditure for a set period of time is known as a budget, making it the correct choice.

What is a currency that a government has declared to be legal tender, but it is not backed by a physical commodity?

• credit history

• fiat money

• M1 Currency

• M2 Currency

Answer explanation

Fiat money is a currency declared legal tender by a government but not backed by a physical commodity, distinguishing it from credit history, M1 Currency, and M2 Currency.

What is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan?

• loan

• compound interest

• credit

• debit

Answer explanation

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

What is a promissory note issued by a bank?

• asset

• bank note

• bond

• budget

Answer explanation

A promissory note issued by a bank is commonly referred to as a bank note, making it the correct choice among the options provided.

What is an entry recording a sum received, listed on the right-hand side or column of an account?

• loan

• compound interest

• credit

• debit

Answer explanation

A credit is an entry recording a sum received, listed on the right-hand side or column of an account.