Vocab for Life Skills

Question 1

Consumer Price Index

Answer 1

measures the price of consumer goods and how they’re trending

Question 2

Mortgage

Answer 2

an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest.

Question 3

Inflation

Answer 3

a general increase in prices and fall in the purchasing value of money.

Question 4

Default

Answer 4

failure to fulfill an obligation, especially to repay a loan or appear in a court of law

Question 5

manufacturer’s suggested retail price (MSRP)

Answer 5

the price the producer of a product sets—and recommends a retailer charge—for the sale of the product.

Question 6

Credit Card (characteristics )

Answer 6

Big sign-up bonuses. ...
No annual fee. ...
No penalty APR. ...
Low interest rates. ...
Zero percent interest. ...
No balance transfer fee.

Question 7

refinancing

Answer 7

finance (something) again, typically with a new loan at a lower rate of interest.

Question 8

Cost of living

Answer 8

level of prices relating to a range of everyday items.

Question 9

Foreclosure

Answer 9

he legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of the mortgaged property and selling it.

Question 10

Lease

Answer 10

Rent

Question 11

Amortization Period

Answer 11

The amount of time of a loan

Question 12

late Fee

Answer 12

charge consumers pay when they fail to make a payment

Question 13

Cash advance

Answer 13

lets you borrow a certain amount of money against your credit card’s line of credit.

Question 14

Disposition fee

Answer 14

fee charged to the person leasing the vehicle at the end of their lease to prepare the returned lease for the next buyer.

Question 15

Check card

Answer 15

of bank card that allows an account holder to access funds in her account

Question 16

Overdraft

Answer 16

drawing more money than the account holds.

Question 17

Annual Percentage Rate (APR

Answer 17

cost you pay each year to borrow money, including fees, expressed as a percentage

Question 18

Depreciation

Answer 18

a reduction in the value of an asset with the passage of time

Question 19

Equity

Answer 19

Ownership

Question 20

A cost-of-living adjustment (COLA)

Answer 20

n increase made to Social Security and Supplemental Security Income (SSI) to counteract the effects of rising prices in the economy

Question 21

Credit rating

Answer 21

measurement of a person or business entity’s ability to repay a financial obligation based on income and past repayment histories

Question 22

Excess mileage charges

Answer 22

the charges under a Lease due to mileage on the related Leased Vehicle over a prescribed limit.

Question 23

Grace period

Answer 23

related to credit and how much time to make a payment/interest starts annually

Question 24

Down payment

Answer 24

Upfront payment

Question 25

Principal

Answer 25

does not include interest

Question 26

Eviction

Answer 26

action of expelling someone

Question 27

Standard of living

Answer 27

the degree of wealth and material comfort available to a person or community.

Question 28

GDP

Answer 28

measures the monetary value of final goods and services

Question 29

deed

Answer 29

a signed legal document that transfers ownership of an asset to a new owner.

Question 30

real / nominal interest rate

Answer 30

the interest rate before taking inflation into account.