Finance Quiz

What is the percentage of funds paid for the use of money called?

• Interest Earned

• Investment

• Interest

• Interest Charged

Which type of financial institution is a for-profit entity licensed to receive deposits, make loans, and provide other financial services?

• Credit Union

• Pay Day Lenders

• Banks

• Title Pawn Lenders

Which type of financial institution is a nonprofit cooperative whose members can make deposits, borrow money, and access other services?

• Banks

• Credit Union

• Pay Day Lenders

• Title Pawn Lenders

Which type of financial institution lends customers small amounts of money at high interest rates to be paid back on the borrower's next paycheck?

• Banks

• Credit Union

• Pay Day Lenders

• Title Pawn Lenders

Which investment is considered the best way to diversify your investments?

• Bonds

• Certificates of deposit

• Stocks

• Mutual funds

Which type of investment can pay dividends?

• Bonds

• Certificates of deposit

• Stocks

• Mutual funds

Which investment type is described as gathering money from individual investors?

• Bonds

• Certificates of deposit

• Stocks

• Mutual funds

What is the definition of "annual percentage rate"?

• A general rise in prices

• Confidence a lender has in your ability to repay your loan

• Interest rate for the whole year rather than a monthly fee or rate as applied to a loan

• Interest that accrues on the principle only

Which term is defined as the interest rate for the whole year rather than a monthly fee or rate as applied to a loan?

• Inflation

• Credit worthiness

• Annual percentage rate

• Simple interest

What is the primary factor that determines credit worthiness?

• Annual percentage rate

• Simple interest

• Personal credit score

• Inflation rate