Personal Financial Literacy Review

What is the term for payment made for the use of borrowed money?

• Collateral

• Corporation

• Creditors

• Interest

Who are considered creditors?

• Persons or institutions to whom money is owed

• Stockholders

• Partners in a partnership

• Sole proprietors

What can a lender claim if a loan is not repaid?

• Premium

• Collateral

• Interest

• Secured loan

What type of loan is backed up with something of value in case the borrower can't pay it back?

• Unsecured loan

• Secured loan

• Premium

• Interest

What type of loan is guaranteed only by a promise to repay?

• Unsecured loan

• Secured loan

• Premium

• Interest

What describes a sole proprietorship?

• Business owned by two or more people

• Business with stockholders

• Unincorporated business owned and run by a single person

• Legal entity with all rights and responsibilities of an individual

What is a partnership in terms of business structure?

• Business owned by one person

• Corporation

• Unincorporated business owned and operated by two or more people

• Business with varying interest rates

What is a corporation?

• A single-owner business

• A business recognized by law as a separate legal entity

• A business owned by two people

• A business that pays high interest rates

Who is considered a stockholder?

• A person who owns a share or shares of stock in a corporation

• A person who lends money

• A person who owns a partnership

• A person who receives premium payments

What is typically paid monthly, quarterly, semiannually, or annually for an insurance policy?

• Interest

• Dividend

• Premium

• Collateral