Financial Literacy Unit 1 Vocab Quiz

What does "Annual percentage rate" refer to?

• The total amount of money borrowed

• The cost of borrowing money on a yearly basis, expressed as a percentage rate

• The monthly payment on a loan

• The interest earned on savings

What is an "Asset"?

• A liability or debt

• An item with economic value, such as stock or real estate, car

• A monthly expense

• A type of loan

What does "Bankruptcy" mean?

• A plan to save money

• A legal proceeding initiated when a person or business is unable to repay outstanding debts or obligations

• A type of investment

• A method of earning interest

What is a "Budget"?

• A plan that outlines what money you expect to earn or receive and how you will save or spend it

• A type of loan

• A method of investing

• A legal document

What is "Comparison shopping"?

• Buying the first product you see

• The practice of comparing prices, features, benefits, risks, and other characteristics of two or more similar products or services

• A method of saving money

• A type of financial investment

What does "Credit" mean in financial terms?

• A type of savings account

• Borrowing money, or having the right to borrow money, to buy something

• A method of earning interest

• A type of insurance

What is a credit report?

• A summary of your credit activity and current credit situation

• A list of your monthly expenses

• A detailed report of your daily spending

• A summary of your employment history

What is a credit score?

• A number created from a scoring model that uses information from your credit history

• A list of your assets and liabilities

• A summary of your annual income

• A report of your spending habits

What are the three C’s of creditworthiness?

• Capital, Capacity, Character

• Cash, Credit, Collateral

• Cost, Convenience, Commitment

• Currency, Credit, Capability

What is a debit card used for?

• Making purchases at businesses with money in your checking account

• Borrowing money from a bank

• Earning interest on savings

• Transferring funds internationally