Personal Finance Vocab Quiz Part 2

This type of account lets you save money that you may not need for several years or even decades and accumulate compounded interest.

• long term savings

• short term savings

• checking account

• high yield savings account

The _______ ______ is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation.

• real return

• nominal return

• effective return

• gross return

An account set up at a financial institution that allows an individual to save for retirement with tax-free growth is a __________ ________?

• savings account

• retirement account

• checking account

• investment account

________ _________ is when you earn interest on both the money you've saved and the interest you earn.

• simple interest

• compound interest

• fixed interest

• variable interest

A company that lends customers small amounts of money at high interest rates, on the agreement that the loan will be repaid when the borrower receives their next paycheck is called?

• payday lender

• credit union

• pawn shop

• microfinance institution

____ ______ is what is earned on an investment after accounting for taxes and inflation.

• nominal return

• real return

• inflation-adjusted return

• tax-adjusted return

An _________ ___ is what a bank charges you any time you withdraw more money from your account than what you have in it.

• overdraft fee

• transaction fee

• service charge

• maintenance fee

The ______ ________ ____ is the cost you pay each year to borrow money, including fees, expressed as a percentage.

• annual percentage rate

• monthly interest rate

• total cost of borrowing

• fixed interest rate

______________ is a digital currency, which is an alternative form of payment created using encryption algorithms.

• cryptocurrency

• fiat currency

• digital wallet

• blockchain

A _______ ____ is a type of cashless payment option where you can only spend money that is loaded on that card.

• credit card

• debit card

• prepaid card

• virtual card