Chapter 3 Vocabulary

What is the definition of credit?

• The ability to save money for future use.

• The ability to borrow money with the agreement to pay later.

• The ability to lend money to others.

• The ability to invest money in stocks.

What does a credit score represent?

• A person's annual income.

• A person’s creditworthiness based on their credit history.

• The total amount of debt a person has.

• The number of credit cards a person owns.

What is a credit report?

• A summary of a person's monthly expenses.

• A detailed report of an individual’s credit history.

• A list of all the loans a person has taken.

• A report on a person's employment history.

What is a credit limit?

• The minimum amount you can borrow.

• The maximum amount of credit you can owe at any time.

• The average amount of credit used by a person.

• The total amount of credit available in the market.

Who are creditors?

• People who borrow money from banks.

• Companies or people who give you credit.

• Financial advisors who manage your credit.

• Individuals who invest in the stock market.

What does APR stand for?

• Annual Payment Rate.

• Annual Percentage Rate.

• Annual Profit Rate.

• Annual Principal Rate.

Tags

CCSS.7.RP.A.3

What is MPR?

• Monthly Payment Rate.

• Monthly Percentage Rate.

• Monthly Profit Rate.

• Monthly Principal Rate.

Tags

CCSS.HSS.MD.B.5

What is an installment plan?

• A plan that allows you to pay for stuff over time.

• A plan that requires full payment upfront.

• A plan that offers discounts for early payment.

• A plan that charges interest on late payments.

Tags

CCSS.HSA.CED.A.2

What is interest in terms of credit?

• The amount of money you save in a bank account.

• The cost of borrowing money a.k.a. the finance charge.

• The amount of money you earn from investments.

• The fee charged for opening a credit account.

Tags

CCSS.7.RP.A.3

What is the principal in a loan?

• The total amount of interest paid over the loan term.

• The amount of money you borrow.

• The total amount of money repaid at the end of the loan.

• The monthly payment amount.