Business Lvl 2

Question 1

savings account

Answer 1

bank account earning interest

Question 2

credit score

Answer 2

number given to someone indicating to for lenders to know their capacity to repay a loan

Question 3

mortage

Answer 3

specific type of loan that’s used to buy a true estate

Question 4

dowpayment

Answer 4

first payment on a loan, (often on the first house)

Question 5

emergency fund

Answer 5

savings account that’s set aside used only for emergency expenses

Question 6

compound interest

Answer 6

interest earned on both the main amount and any already earned interest

Question 7

investing

Answer 7

process of setting money aside to increase wealth over time for long-term financial goals like retirement

Question 8

bond

Answer 8

certificate issued by a government/company promising to pay back with interest the money borrowed fromthe buyer of the certificate

Question 9

stocks

Answer 9

shares of ownership in a company

Question 10

mutual fund

Answer 10

money used by company to buy stocks variety, bonds, or money market instruments

Question 11

tax shelter

Answer 11

investment providing immediate tax benefits and a reasonable expectation of a future financial return

Question 12

assets

Answer 12

money and other valuables belonging to someone/business

Question 13

liabilities

Answer 13

debt one owes

Question 14

net worth

Answer 14

difference between assetes and liabilities

Question 15

balance

Answer 15

amount of money in one’s account (also amount of money in credit card)