Understanding Basic Financial Terms

What is the term for a person or organization that uses a product or service?

• Producer

• Consumer

• Lender

• Borrower

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DOK Level 1: Recall

What is the term for the granting of a loan and the creation of debt?

• Interest

• Credit

• Economy

• Personal finance

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DOK Level 1: Recall

What is the obligation of repayment owed by one party to a second party, usually including the repayment of the original loan amount plus interest?

• Debt

• Loan

• Credit

• Interest

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DOK Level 1: Recall

What is the term for a system by which goods and services are produced and distributed?

• Economy

• Financial literacy

• Personal finance

• Credit

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DOK Level 1: Recall

What is the knowledge and skillset necessary to be an informed consumer and manage finances effectively called?

• Personal finance

• Financial literacy

• Economy

• Debt

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DOK Level 1: Recall

What is the fee paid by a borrower to the lender for the use of borrowed money, typically calculated as a percentage of the principal?

• Loan

• Interest

• Debt

• Credit

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DOK Level 1: Recall

What is a debt evidenced by a "note," which specifies the principal amount, interest rate, and date of repayment?

• Loan

• Credit

• Debt

• Interest

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DOK Level 1: Recall

What term encompasses all of the decisions and activities of an individual or family regarding their money, including spending, saving, and budgeting?

• Financial literacy

• Personal finance

• Economy

• Credit

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DOK Level 1: Recall

Which of the following is NOT a component of personal finance?

• Spending

• Saving

• Budgeting

• Manufacturing

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DOK Level 1: Recall

Which term refers to the creation of debt and the granting of a loan?

• Interest

• Credit

• Debt

• Economy

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DOK Level 1: Recall