Vocabulary 2 Week 1

What does "Credit" refer to in financial terms?

• Money borrowed to make investments

• 1. The total value of assets owned

• A form of financial security

• The ability to borrow money or access goods or services with the promise of future payment

If you borrow $1,000 from a bank and agree to pay back $1,100 in one year, what is the extra $100 called?

• Interest

• Credit

• Investment

• Asset

Which of the following is an example of an "Investment"?

• Renting an apartment

• Buying a house

• Borrowing money from a friend

• Paying off a loan

"My house and car are ______ because they have value and can be sold if needed."

We took out a ________to buy our house, and now we make monthly payments to the bank

How does a "Mortgage" differ from a "Lease"?

• A mortgage is a loan used to buy property, while a lease is a rental agreement for property

• A mortgage is a type of investment, while a lease is a type of credit

• A mortgage is a short-term financial commitment, while a lease is a long-term financial commitment

• A mortgage is a type of insurance, while a lease is a type of investment