Interest Quiz

Definition: cost of credit expressed as a yearly percentage

• Interest rate

• Annual Percentage Rate (APR)

• Grace period

• Inflation

Definition: interest rate a lender can change at any time without notice

• Variable Interest Rate

• Simple Interest

• Compound Interest

• Fixed Interest Rate

Definition: A return with inflation taken out of it.

• Nominal Return

• Expected Return

• Grace Period

• Real Return

Definition: interest paid on the principal alone

• Interest Rate

• Simple Interest

• Fixed Interest Rate

• Inflation

Definition: Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually

• Compound Interest

• Interest Rate

• Variable Interest Rate

• Inflation

Definition: the time between the billing date and the payment due date when no interest is charged

• Elimination Period

• Real Return

• Grace Period

• Reinstatement

The return on an investment before the impacts of inflation and taxes are taken into account.

• Nominal Return

• Real Return

• Grace Period

• Expected Return

An interest rate that does not change.

• Simple Interest

• Variable Interest Rate

• Compound Interest

• Fixed Interest Rate

Percentage of amount borrowed to be added to the amount loaned and paid back.

• Interest Rate

• Purchase Power

• Compound Interest

• Simple Interest

Definition: the ability to purchase goods and services

• Price Controls

• Buyer Ability

• Purchase Power

• Shopping Authority