Personal Financial Concepts Quiz

People pay a lower percentage of taxes if they earn more. This is an example of a (a)   tax system.

• Regressive Tax
• Progressive Tax
• Proportional Tax
• Flat Tax

People pay a higher percentage of taxes if they earn more. This is known as a (a)   tax system.

• Progressive Tax
• Regressive Tax
• Flat Tax
• Proportional Tax

(a)   is the tax paid on people's earnings.

• Income Tax
• Sales Tax
• Property Tax
• Value Added Tax

(a)   is the amount charged for borrowing money or amount paid to an investor

• Interest
• Principal
• Dividend
• Capital

A portion of a covered loss that is not paid by the insurer is called a (a)  

• Deductible
• Premium
• Coverage
• Claim

(a)   is added to the principal of a deposit or loan so that the added interest also earns interest from then on. Leads to higher payments or returns over the long run.

• Compound Interest Rate
• Simple Interest Rate
• Fixed Interest Rate
• Variable Interest Rate

Uncertainty of return on an investment is known as (a)  

• Risk
• Profit
• Interest
• Growth

Borrowing money with the agreement to pay it back is called (a)  

• Credit
• Debit
• Interest
• The Spread

An interest rate that changes depending on the state of the economy is called a (a)  

• Variable Interest Rate
• Fixed Interest Rate
• Prime Interest Rate
• Discount Interest Rate

A loan that is used to buy real estate is called a (a)  

• Mortgage
• Lease
• Credit Card
• Personal Loan