Personal Finance Vocabulary

What does the term 'budget' mean in personal finance?

• A plan for spending and saving money

• A type of investment

• A financial institution

• A loan agreement

Which of the following is a synonym for 'debt'?

• Asset

• Liability

• Income

• Profit

What is 'interest' in the context of a loan?

• The principal amount borrowed

• The fee paid for borrowing money

• The total amount of the loan

• The duration of the loan

Choose the correct sentence: 'He needs to ______ his expenses to save more money.'

• reduce

• increase

• multiply

• divide

What does 'credit score' refer to?

• A measure of a person's financial trustworthiness

• The amount of money in a savings account

• The interest rate on a loan

• The total amount of debt a person has

Which word best completes the sentence? 'She has a high ______ because she always pays her bills on time.'

• credit score

• debt

• interest

• loan

What is the primary purpose of a 'savings account'?

• To earn interest on deposited money

• To borrow money

• To invest in stocks

• To pay off debts

Which of the following is an antonym for 'profit'?

• Loss

• Gain

• Revenue

• Income

What does 'inflation' mean in economic terms?

• A general increase in prices

• A decrease in the value of money

• An increase in the supply of money

• A rise in employment rates

Choose the correct word: 'The ______ of living in the city is higher than in the countryside.'

• cost

• price

• value

• expense