Financial Definitions and Concepts Quiz

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

An obligation of repayment owed by one party to a second party, including repayment of the original loan amount plus interest.

<p>A system by which goods and services are produced and distributed.</p> Signup and view all the answers

<p>The knowledge and skillset necessary to be an informed consumer and manage finances effectively.</p> Signup and view all the answers

<p>A fee paid by a borrower to the lender for the use of borrowed money, typically calculated as a percentage of the principal.</p> Signup and view all the answers

<p>A debt evidenced by a 'note,' which specifies the principal amount, interest rate and date of repayment.</p> Signup and view all the answers

<p>All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.</p> Signup and view all the answers

<p>Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually.</p> Signup and view all the answers

<p>Five hundred dollars in readily available cash to be used only in the event of an emergency.</p> Signup and view all the answers

<p>Percentage paid to a lender for the use of borrowed money; percentage earned on invested principal.</p> Signup and view all the answers

<p>The five steps to financial success.</p> Signup and view all the answers

<p>Saving money over time for a large purchase.</p> Signup and view all the answers

<p>A written cash flow plan.</p> Signup and view all the answers

<p>A summary that shows total income and spending for a given time period.</p> Signup and view all the answers

<p>A copy of each check you write.</p> Signup and view all the answers

<p>Series of envelopes that are divided into categories and used to store cash for planned monthly expenses.</p> Signup and view all the answers

<p>An item that is bought without previous planning or consideration of the long-term effects.</p> Signup and view all the answers

<p>Occurs when money is withdrawn from a bank account and that available balance goes below zero.</p> Signup and view all the answers

<p>To match your bank statement with your checkbook.</p> Signup and view all the answers

<p>A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero.</p> Signup and view all the answers

<p>A yearly fee that's charged by the credit card company for the convenience of the credit card.</p> Signup and view all the answers

<p>Cost of borrowing money on an annual basis, takes into account the interest rate and other related fees on a loan.</p> Signup and view all the answers

<p>Type of card issued by a bank that allows users to finance a purchase.</p> Signup and view all the answers

<p>A detailed report of an individual's credit history.</p> Signup and view all the answers

<p>A measure of an individual's credit risk; calculated from a credit report using a standardized formula.</p> Signup and view all the answers

<p>Preferred method of debt repayment; includes paying minimums on all debts except for the smallest, which is paid off aggressively.</p> Signup and view all the answers

<p>A decrease or loss in value.</p> Signup and view all the answers

<p>An interest rate charged to a customer during the early stages of a loan, often increasing after a specified period.</p> Signup and view all the answers

<p>Time frame that a loan agreement is in force, and before or at the end of which the loan should be repaid or renegotiated.</p> Signup and view all the answers

<p>An expense, such as a charitable contribution, that can be deducted from one's taxable income.</p> Signup and view all the answers

<p>A form completed annually by current and prospective college students to determine their eligibility for financial aid.</p> Signup and view all the answers

<p>A form of federal or state financial aid that does not need to be repaid, usually given to students who demonstrate financial need.</p> Signup and view all the answers

<p>A form of financial aid that does not need to be repaid, usually awarded on the basis of academic, athletic, or other achievements.</p> Signup and view all the answers

<p>A program that allows students to work part-time while continuing their studies.</p> Signup and view all the answers

<p>The promotion of a product or service by identifying it with distinct characteristics, usually associated with public perception.</p> Signup and view all the answers

<p>Refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc.</p> Signup and view all the answers

<p>Feeling regret or concern after making a large purchase.</p> Signup and view all the answers

<p>Latin term for 'buyer beware.'</p> Signup and view all the answers

<p>To buy an item with credit; paying over time.</p> Signup and view all the answers

<p>The process of communicating the value of a product or service to customers.</p> Signup and view all the answers

<p>Refers to the financial opportunity that is given up because you choose to do something else with your money.</p> Signup and view all the answers

<p>An amount of money you spend $300, that causes some pain to part with.</p> Signup and view all the answers

<p>A public sale in which property or items of merchandise are sold to the highest bidder.</p> Signup and view all the answers

<p>Retail store where people sell items and the owner of the shop gets a percentage of the sale.</p> Signup and view all the answers

<p>The process of quantifying costs and benefits of a decision.</p> Signup and view all the answers

<p>Type of yard sale with more items; usually the entire contents of a household.</p> Signup and view all the answers

<p>Process by which the holder of a mortgage sells the property of a homeowner who has not made payments on time.</p> Signup and view all the answers

<p>Having to do with a person's honesty and moral attributes.</p> Signup and view all the answers

<p>The difference between the wholesale price and retail price.</p> Signup and view all the answers

<p>To bargain for a lower price.</p> Signup and view all the answers

<p>The ability to walk away from a purchase when negotiating.</p> Signup and view all the answers

<p>The practice of dividing the money a person invests between several different types of investments in order to lower risk.</p> Signup and view all the answers

<p>The process of setting money aside to increase wealth over time for long-term financial goals.</p> Signup and view all the answers

<p>Account or arrangement in which a person puts his/her money for long-term growth.</p> Signup and view all the answers

<p>Quality of an asset that permits it to be converted quickly into cash without loss of value.</p> Signup and view all the answers

<p>A list of your investments.</p> Signup and view all the answers

<p>Degree of uncertainty of return on an asset; likelihood of loss or reduced profit.</p> Signup and view all the answers

<p>Relationship of substantial reward compared to the amount of risk taken.</p> Signup and view all the answers

<p>Piece of ownership in a company, mutual fund, or other investment.</p> Signup and view all the answers

<p>Securities that represent part ownership or equity in a corporation.</p> Signup and view all the answers

<p>Money that is invested, either tax-deferred or tax-free, within a retirement plan.</p> Signup and view all the answers