Personal Finance

Question 1

Define the term Bankrupt

Answer 1

When a business, or person, is unable to pay his or her debts.

Question 2

Define the term Commission

Answer 2

The percentage of a sales price received by a salesperson for his or her services.

Question 3

What is a Credit Bereau

Answer 3

An organisation that keeps on file the credit record of consumers.

Question 4

What is a creditors?

Answer 4

A person who is owed money to.

Question 5

What is a debtors?

Answer 5

A person who owes money.

Question 6

What is a Default Notice?

Answer 6

A document from a lender stating that a person has failed to carry out terms of a contract.

Question 7

What is a Divident?

Answer 7

A sum payable as profit for shares.

Question 8

What are equities?

Answer 8

They are stocks and shares held by an indivdual.

Question 9

What is a fee?

Answer 9

Money paid to others for their services.

Question 10

What are Fixed Expenses?

Answer 10

Expenses that are the same amount every time.

Question 11

What does Garnisheed?

Answer 11

A certain amount of money that can be taken of the borrowers wage.

Question 12

What is a Guarantor?

Answer 12

Someone who guarantees to pay back the money if the borrower does not.

Question 13

What does Impulse Buying?

Answer 13

Buying something without giving much thought as to whether you really need it.

Question 14

What is Income?

Answer 14

Money received on a regular basis from work, property, business, investment or welfare payment.

Question 15

What is an Investment?

Answer 15

Putting money into money in order to make a profit. Individuals, government and businesses all carry out investments.

Question 16

What is Net Income?

Answer 16

The amount a person has left after income tax is deducted.

Question 17

What does Overtime mean?

Answer 17

Time during which work is done outside regular working hours. Such time is usually paid at a higher rate.

Question 18

What is a Portfolio?

Answer 18

A range of low risk and high-risk financial investment.

Question 19

What is a Premium?

Answer 19

The amount of money to be paid to receive insurance cover.

Question 20

What is a Profit?

Answer 20

What remains after all business expenses are deducted from sales revenue.

Question 21

What is Rent?

Answer 21

Regular payments made by a tenant to an owner fit the use of the owner’s building or land.

Question 22

What is Repossession?

Answer 22

To take back goods bought on credit if repayments have not been paid back.

Question 23

What is a Royalty?

Answer 23

A sum paid to authors, musicians, and so on as, as a percentage of the proceeds from their work.

Question 24

What is a Salary?

Answer 24

A fixed amount of money paid on a regular basis (fortnightly or monthly) to a permanent employee of ab organisation.

Question 25

What is a Savings Plan?

Answer 25

A commitment to regularly put aside some money for future use.

Question 26

What is a Secured Loan?

Answer 26

Something deposited as a guarantee to fulfill the payment of a loan.

Question 27

What is a Social Welfare Plan?

Answer 27

A payment made by a government to help people who are deemed in need of financial assistance.

Question 28

What is Superannuation?

Answer 28

A way of saving so an employee has some money in retirement.

Question 29

What is an Unsecured Loan?

Answer 29

Nothing is deposited as a guarantee to fulfill the payment of the loan.

Question 30

What are Variable Expenses?

Answer 30

Expenses that change over time.

Question 31

What is a wage?

Answer 31

It is money received by workers, usually on a weekly basis, for services they provide to an employer.