Interest Types Quiz

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Questions and Answers

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:

<p>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</p> Signup and view all the answers

Match the following terms with their meanings:

<p>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</p> Signup and view all the answers

Match the following types of interest with their descriptions:

<p>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</p> Signup and view all the answers

Match the following types of loans with their common usage:

<p>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</p> Signup and view all the answers

Match the following types of commission with their descriptions:

<p>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</p> Signup and view all the answers

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

<p>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</p> Signup and view all the answers

Match the following types of interest with their typical scenarios:

<p>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</p> Signup and view all the answers

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