Personal Finance Quiz Terms

Question 1

When goods, services or money is received in exchange for a promise to pay a definite sum of money at a future date.

Answer 1

Credit

Question 2

The person or organization who had the resources to provide the individual with a loan

Answer 2

Lender

Question 3

The person or organization that is receiving the money from the lender

Answer 3

Borrower

Question 4

A record of consumer’s credit history that includes information about credit card use as well as other types of credit, such as auto loans, student loans and mortgages

Answer 4

Credit Report

Question 5

A number that summarizes an individual’s credit record history. It is a numeric “grade” of a consumer’s financial reliability.

Answer 5

Credit Score

Question 6

Something you give up when you make a choice

Answer 6

Opportunity Cost

Question 7

Is charged when a card holder does not make the minimum payment by the due date

Answer 7

Late Payment Fee

Question 8

Is charged if the amount balance goes over the set credit limit

Answer 8

Over the Limit Fee

Question 9

The cost of credit expressed as a yearly interest rate

Answer 9

APR

Question 10

The act of transferring debt from one credit account to another

Answer 10

Balance Transfer

Question 11

And index that represents the interest rate most banks charge their most credit worthy customers

Answer 11

Prime Rate

Question 12

The APR charged during the credit card’s introductory period after he credit account is opened. The card will have a different APR after the introductory period ends

Answer 12

Introductory Rate

Question 13

Reduces the risk of losing your money

Answer 13

Diversification

Question 14

When you use your credit card like a debit card and take money out of an ATM. They charge a high fee

Answer 14

Cash Advance

Question 15

The amount of money charged for borrowing money

Answer 15

Interest

Question 16

Amount of money you have to pay for each billing cycle. The lowest amount a person must pay on their credit card bill

Answer 16

Minimum payment

Question 17

When you have to pay interest on interest

Answer 17

Compound Interest

Question 18

Helps you figure out how long it will take your investment to double

Answer 18

Rule of 72

Question 19

Types of credit and use
Amount of debt 
Length of credit history
Request for new credit
Payment history

Answer 19

What Factors affect your credit score

Question 20

Time
Rate of return
Investment size

Answer 20

What factors affect the growth of your savings?