Personal Finance

What happens if you do not pay a credit card bill on time?

• Use your debit card
• You go into debt
• Declare bankrupty
• Pay interest

Bad credit can affect your ability to 

• Buy a home
• Get a job
• Get a loan
• All of the above

Who pays interest when you deposit money in the bank?

• The depositor
• The bank

What is the riskiest type of bond?

• Municipal
• Savings
• Corporate

Money owed to a person or a business

• Debit
• Credit
• Debt
• Late Fee

Stock brokers can a portion of the profit they make, this is called

• Commutation
• Interest
• Commission
• S&P 500

What is the safest way to pay for an item to avoid debt?

• Cash
• Check
• Credit
• Debit

Buying stock through mutual funds is less risky than buying individual small pieces of many companies at a time because

• you diversify your risk  by buying small pieces of many companies at a time
• inflation is less likely to erode your investment

If a bank pays 3% interest on savings, how much interest will it charge for loans?

• 3%
• less than 3%
• more than 3%
• the discount rate

In general, the higher the potential return on an investment, the riskier the investment.

• True
• False