Finance Quiz

What is the term for the use of funds today for a future benefit with some level of risk involved?

• Interest

• Investment

• Interest Earned

• Interest Charged

Which term refers to the funds paid for the use of money?

• Investment

• Interest

• Interest Earned

• Interest Charged

Which term is used to describe the cost of borrowing money?

• Investment

• Interest

• Interest Earned

• Interest Charged

Which term is associated with the risk of financial loss?

• Interest

• Investment

• Interest Earned

• Interest Charged

Which term is used to describe the earnings from an investment?

• Investment

• Interest

• Interest Earned

• Interest Charged

Which type of financial institution is licensed to make loans and provide other financial services?

• Banks

• Credit Union

• Pay Day Lenders

• Title Pawn Lenders

Which type of lender requires the borrower to use a car title as collateral?

• Banks

• Credit Union

• Pay Day Lenders

• Title Pawn Lenders

What type of interest accrues only on the principle?

• Annual percentage rate

• Simple interest

• Inflation

• Credit worthiness

What is compound interest?

• Interest calculated on the initial principle and on the accumulated interest of previous periods of a deposit or loan

• An interest rate that is set and will not change over a given period of time

• An interest rate on a loan that fluctuates over a period of time

• Amount of money an individual pays to carry a policy

Which type of interest involves the concept of earning interest on interest?

• Fixed interest

• Variable interest

• Compound interest

• Insurance premium