Interest Types Quiz

10 Questions

Match the following types of interest with their descriptions:

Fixed interest type = Remains the same throughout the fixed rate term Variable interest type = Changes over time Annual Percentage Rate = Total cost of a loan, including interest rate and associated fees Prime interest type = Rate set by banks for their best customers

Match the following types of interest with their primary usage:

Discounted interest type = Offered by a bank for a specific period as a promotional deal Simple interest type = Interest calculated on the principal amount only Compound interest type = Interest calculated on the initial principal and also on the accumulated interest Public interest = Interest in a matter of public concern or attention

Match the following descriptions with the types of interest:

Remains the same throughout the fixed rate term = Fixed interest type Interest calculated on the principal amount only = Simple interest type Changes over time = Variable interest type Total cost of a loan, including interest rate and associated fees = Annual Percentage Rate

Match the following types of interest with their examples:

Fixed interest type = Often 2-5 years Variable interest type = Changes over time Annual Percentage Rate = Displayed as a percentage and charged annually Discounted interest type = Lower than the lender's standard variable rate, offered as a promotional deal

Match the following terms with their meanings:

Prime interest type = Rate at which a commercial bank would charge to their most financially strong customers Public interest = Interest in a matter of public concern or attention Compound interest type = Interest calculated on the initial principal and also on the accumulated interest Discounted interest type = Lower than the lender's standard variable rate, offered as a promotional deal

Match the following types of interest with their descriptions:

Simple interest = Charged only on the principal amount, not compounded Compound interest = Charged on the principal amount as well as any accumulated interest Public interest = Relates to the welfare of the general public and society Types of commission = Fees charged for specific services or transactions provided to customers

Match the following types of loans with their common usage:

Simple interest = Short-term loans such as personal or car loans Compound interest = Commonly associated with mortgages Straight commission = Earnings based solely on commission Salary plus Commission = Earnings based on a basic or fixed salary plus a commission

Match the following types of commission with their descriptions:

Straight commission = Agent's earnings based solely on commission Salary plus Commission = Agent's earnings based on a basic or fixed salary plus a commission Salary plus Bonus Commission = Sales agent receives a monthly salary plus a commission and/or bonus for exceeding a certain sales quota Graduated Commission = Total earning of the sales agent based on commission rates for different levels of sales

Match the following financial market participants with their impact on public interest:

Governments, regulators, and institutions = Make decisions at the forefront of public interest Sales supervisor or head of department = Receives additional commission based on store sales or the sales of the representatives who work under them Python = General-purpose programming JavaScript = Client-side scripting for web applications

Match the following types of interest with their typical scenarios:

Simple interest = Used for short-term loans such as personal or car loans Compound interest = Associated with long-term loans like mortgages Public interest = Relates to the welfare of the general public and society Types of commission = Fees charged for specific services or transactions provided to customers

Test your knowledge of different types of interest with this quiz. From fixed and variable interest types to APR, prime, discounted, simple, and compound interest, challenge yourself to understand the various forms of interest and their characteristics.