vocab quiz unit 7

Question 1

savings account

Answer 1

bank account that earns interest

Question 2

principal

Answer 2

amount of money borrowed or amount still owed on a loan, separate from interesg

Question 3

money market account

Answer 3

savings account that requires a minimum balance and earns interest that varies from month to month

Question 4

interest rate

Answer 4

price that is paid for the use of another’s money

Question 5

debit card

Answer 5

cash card that allows one to withdraw money or purchase with a chrcking or savings account

Question 6

credit union

Answer 6

maximum amount a credit company will allow someone to borrow on a single card

Question 7

credit bureau

Answer 7

agency that collects info on how promptly people and businesses pay their bills

Question 8

credit

Answer 8

arrangement to receive cash, goods, or services now and pay them in the future

Question 9

commercial banks

Answer 9

for-profit institution that offers a full range of financial services including checking, savings, and lending

Question 10

collateral

Answer 10

form of security that helps guarantee that the creditor will be repaid

Question 11

closed-end credit

Answer 11

credit as a one- time loan that is paid back over specific period of time in payments or equal amounts

Question 12

certificate of deposit

Answer 12

savings alternstivr in which moneyis lent off on deposit for a started period

Question 13

borrower

Answer 13

person or organization that is receiving energy

Question 14

bankruptcy

Answer 14

legal proceds in which some or all assets of a debator are distributed among editors because the dector is unable to pay his or her debts