Financial Literacy Final Study Guide- Spring 2025

________ is a fee charged for using borrowed money for a purchase.

• interest

• deposit

• salary

• dividend

A(n) ________ is anything you own that has value.

• asset

• liability

• expense

• income

Your __________ is the amount you have to pay before insurance pays.

• deductible

• premium

• copayment

• coverage

______ is the difference between what a house is worth and what is still owed on it.

• equity

• interest

• principal

• depreciation

The 12-month period used for reporting financial activity is known as a(n) __________.

• fiscal year

• calendar month

• quarterly cycle

• business week

________ means having the knowledge and skills to manage your personal finances.

• financial literacy

• economic inflation

• market speculation

• tax evasion

________ relates to all of the different money decisions you make each day.

• personal finance

• corporate law

• environmental science

• physical education

Which bank service would typically offer the highest interest rate?

• checking account

• basic savings account

• money market account

• certificate of deposit

Taxes and withholdings impact your ________, which is the amount of money you take home in your paycheck.

• net income

• gross income

• taxable income

• total earnings

______ means you pay someone else each month for a place to live.

• renting

• buying

• borrowing

• selling