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Final Exam Part 2

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

Which of the following is an example of unsecured credit?

a)

car loan

b)

mortgage

c)

credit card

2.

The annual percentage rate (APR) for a credit card refers to the

a)

credit limit of the card

b)

current balance of the card

c)

interest rate of the card

3.

Having a good credit score leads to

a)

Higher interest rates on loans

b)

Lower interest rates on loans

c)

No change to interest rates on loans

4.

Your monthly cost to have insurance is called the

a)

Deductible

b)

Copay

c)

Premium

5.

True or False. The state of New Jersey requires all drivers to have car insurance.

a)

True

b)

False

6.

_____ is about accumulating money for the short-term (ex. emergency fund) while ____ is about accumulating money for the long-term (ex. retirement).

a)

Saving, Saving

b)

Investing, Investing

c)

Investing, Saving

d)

Saving, Investing

7.

Interest that applies not only to the initial principal of an investment or a loan, but also to the accumulated interest from previous periods

a)

Simple Interest

b)

Complicated Interest

c)

Compound Interest

8.
  • Type of fund with a portfolio constructed to match or track the components of a financial market.

a)

Stocks

b)

Bonds

c)

Mutual Funds

d)

Index Funds