Consumer Math A Semester Review

Define the word "bartering".

• trading goods or services for other goods or services

• a form of currency exchange

• selling goods for cash

• borrowing to pay for purchases

What is the difference between a credit card and a charge card?

• A credit card is only for online purchases; a charge card is for in-store use.
• A credit card allows carrying a balance; a charge card requires full payment monthly.
• A credit card requires full payment monthly; a charge card allows carrying a balance.
• A credit card has no spending limit; a charge card has a fixed limit.

Which three variables are used to determine accrued interest?

Select three correct answers.

• cash advance

• principal

• rewards earned

• rate

• time in years

The ​ (a)   is the original amount owed on a loan.

• principal
• loan due
• available balance
• interest accrued

What does APR stand for, in the context of finance?

• Annual Payment Rate

• Average Percentage Rate
• Adjusted Payment Rate
• Annual Percentage Rate

What is needed, to convert currency between one country's monetary system and another country's system?

• The historical value of the currencies.

• The average income of citizens in both countries.
• Current exchange rate between the two currencies.

• The total amount of money in the country.

Which term refers to the person or agency from whom you borrow money?

• borrower

• lender

• creditor
• debtor

Which of these takes money directly from your checking account? Select two.

• charge card

• personal check

• mortgage

• debit card

• credit card

What does FICO stand for?

• Federal Insurance Corporation
• Financial Institution Credit Organization
• Fictional International Company
• Fair Isaac Corporation

Explain what FICO is, in terms of finance.

• FICO is a type of investment strategy used by financial advisors.
• FICO refers to a government program for loan forgiveness.
• FICO is a credit scoring model used by lenders to evaluate an individual's creditworthiness.
• FICO is a software used for managing personal finances.