Introduction

Question 1

Consumer

Answer 1

A person or organization that uses a product or service

Question 2

Credit

Answer 2

The granting of a loan and the creation of debt; any form of deferred payment

Question 3

Debt

Answer 3

An obligation of repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest

Question 4

Economy

Answer 4

A system by which goods and services are produced and distributed

Question 5

Financial literacy

Answer 5

The knowledge and skillset necessary to be an informed consumer and manage finances effectively

Question 6

Interest

Answer 6

A fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal (original loan amount

Question 7

Loan

Answer 7

A debt evidenced by a “note,” which specifies the principal amount, interest rate, and date of repayment

Question 8

Personal finance

Answer 8

All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.