12th Grade Personal Economics Vocabulary Quiz

What is a credit score?

• The total amount of money you owe to creditors

• A numerical representation of your creditworthiness

• The interest rate on your credit card

• The amount available on your credit line

Which term refers to the regular payments made for insurance coverage?

• Dividends

• Net worth

• Premiums

• Capital gains

What is net worth?

• Total assets minus total liabilities

• Total income before taxes

• Monthly investment returns

• Annual salary after taxes

Which term describes money's function as a way to preserve wealth over time?

• Standard of value

• Store of value

• Net worth

• Capital gains

What are fixed expenses?

• Costs that change monthly based on usage

• One-time emergency expenses

• Regular payments that remain constant

• Optional recreational expenses

What is simple interest?

• Interest calculated on both principal and accumulated interest

• Interest calculated only on the principal amount

• Interest that varies with market conditions

• Interest paid on credit card balances

What are variable expenses?

• Expenses that remain the same each month

• Costs that fluctuate based on usage or circumstances

• Annual subscription fees

• Fixed mortgage payments

What is gross pay?

• Take-home pay after deductions

• Total earnings before any deductions

• Monthly bonus payments

• Commission-based income

What are dividends?

• Regular monthly expenses

• Insurance premiums

• Payments made to shareholders from company profits

• Credit card fees

What is compound interest?

• Interest earned on both principal and accumulated interest

• Interest calculated only on the original amount

• A fixed interest rate that never changes

• Interest paid on credit card debt