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WorksheetsAP Macroeconomics Unit 4
Total questions: 35
Worksheet time: 24mins
Name
Class
Date
1.
The cost of borrowed money, usually expressed as a percentage.
a)
interest
b)
savings plan
c)
scarce
d)
purchase
2.
Amount of money originally borrowed
a)
Mortgage
b)
Principal
c)
Annual percentage rate (APR)
d)
Finance company
3.
What does CD stand for when talking about investments?
a)
Calculated Dividend
b)
Certificate of Deposit
c)
Central Dollar
d)
Current Deposit
4.
A mutual fund allows investments to be ___________.
a)
Secured
b)
Guaranteed
c)
Diversified
d)
Minimal
5.
Because mutual funds spread your investment around in multiple stocks and bonds, they are a great example of this term
a)
diversification
b)
overdraft
c)
debt
d)
beneficiary
6.
This term refers to the original amount of a loan OR the original amount of money invested.
a)
Principal
b)
Interest
c)
Rebate
d)
Fixed Rate
7.
This is just a savings account with a slightly higher interest rate because the saver commits to a longer saving period for a set amount deposited.
a)
C.D.
b)
debt
c)
beneficiary
8.
This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.
a)
compound interest
b)
emergency fund
c)
APR
d)
debt
9.
The availability of money; how quickly you can convert it into cash in your hand is its _______.
a)
diversity
b)
liquidity
c)
yield
d)
gratuity
10.
Something of value used to secure a loan
a)
Finance charge
b)
Unsecured loan
c)
Collateral
d)
Interest
11.
Amount of money a borrower must pay for the usage of someone else’s money
a)
Finance charge
b)
Unsecured loan
c)
Collateral
d)
Interest
12.
What happens if you do not pay a credit card bill on time?
a)
Use your debit card
b)
You go into debt
c)
Declare bankrupty
d)
Pay interest
13.
Which card takes the money out of your account immediately?
a)
Credit
b)
Debit
14.
Which bank account earns you the most interest?
a)
Savings
b)
Checking
c)
Certificate of Deposit
15.
Who pays interest on a loan?
a)
The borrower
b)
The bank
16.
Who pays interest when you deposit money in the bank?
a)
The depositor
b)
The bank
17.
To measure the stock market as a whole people look to
a)
Dow Jones
b)
Stockbrokers
c)
Individual stocks
d)
Unemployment rate
18.
Stock brokers can a portion of the profit they make, this is called
a)
Commutation
b)
Interest
c)
Commission
d)
S&P 500
19.
Bad credit can affect your ability to
a)
Buy a home
b)
Get a job
c)
Get a loan
d)
All of the above
20.
What will you pay back if you borrow $
a)
principal only
b)
interest only
c)
interest and finance charges
d)
principal + interest
21.
The least amount of money you can pay on a credit card per month.
a)
Credit Limit
b)
Minimum Payment
c)
Annual Percentage Rate
d)
Opportunity Cost
22.
What do debit cards and checks have in common?
a)
The money comes directly out of your account
b)
You can pay the full amount later
c)
You are really taking out a small loan
23.
Which of the following best describes what dividends are?
a)
The increased value of a stock.
b)
A periodic payment to the owners of a stock.
c)
A reward for selecting good stocks.
24.
Money owed to a person or a business
a)
Debit
b)
Credit
c)
Debt
d)
Late Fee
25.
In general, the higher the potential return on an investment, the riskier the investment.
a)
True
b)
False
26.
If a bank pays 3% interest on savings, how much interest will it charge for loans?
a)
3%
b)
less than 3%
c)
more than 3%
d)
the discount rate
27.
Eric purchased a movie ticket with his card. This money will come straight out of his checking account. What card did he use?
a)
Credit Card
b)
Debit Card
c)
Gift Card
d)
Rewards Card
28.
In the past 12 months, Mia has made 4 late payments on her credit card. How will this affect her credit score?
a)
Her score will go up
b)
Her score will stay the same.
c)
She will likely get more credit card offers.
d)
Her credit score will go down.
29.
The advantage of a 30 year mortgage over a 15 year mortgage is that you pay less over the life of a loan
a)
True
b)
False
c)
Maybe
30.
Which is an asset?
a)
Mortgage
b)
Balance on a credit card or loan
c)
Boat loan
d)
Stocks you own
31.
Example of a Liability:
a)
Boat
b)
Insurance Payment
c)
Electric Bill
d)
Snowmobile Loan
32.
Interest is:
a)
The cost of borrowing money
b)
A good thing to have to pay
c)
The amount of money that you borrow to buy something
d)
A word that we used in class but has no real meaning
33.
Maria and Sara borrow $15,000 from the same bank to buy the same kind of car. Maria's credit score is 732 and Sara's credit score is 588. Who is likely to pay the lower finance charge?
a)
They will pay the same because they are borrowing from the same bank
b)
Maria
c)
Sara
d)
They will pay the same because they are buying the same kind of car
34.
Choose the best suggestion for building and maintaining a good credit score
a)
Have money in savings and protected against identity theft
b)
Keep debt low and pay bills on time
c)
Make safe investments and set clear financial goals
d)
Comparison shop and follow a budget
35.
A loan can be denied by a lender because of a person's-
a)
education
b)
health
c)
credit history
d)
gender
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