ECA Finance

Question 1

Is an electric bill a fixed cost, or a variable cost?

Accepted Answer

variable

Question 2

What is the definition of term?

Accepted Answer

the amount of time you have to repay your principal

Question 3

Which of the following would NOT appear on a credit report?

Accepted Answer

Salary of your current job

Question 4

Which of the following are possible ways for people to get health insurance?

Accepted Answer

all of these

Question 5

What is the definition of wealth?

Accepted Answer

a measurement of your assets minus your liabilities, a savings certificate with a fixed interest rate and maturity date

Question 6

Investing in a diversified portfolio of stocks guarantees that you won't lose money with your investments.

Accepted Answer

False

Question 7

A secured credit card is a type of card that makes cardholders to make a security deposit = to the limit on the account

Accepted Answer

True

Question 8

What is the definition of simple Interest?

Accepted Answer

interest paid on the principal alone

Question 9

You put $1,500 into a 2year CD which earns 2% interest per year. Then inflation rate is 3% per year. Which is right?

Accepted Answer

You have less purchasing power cause inflation is greater than the interest

Question 10

When a car is put as collateral on a secured loan and the debtor fails to make payments, the creditor may do what?

Accepted Answer

repossess it

Question 11

If you pay your credit card balance in full by the due date, you will NOT be charged interest.

Accepted Answer

True

Question 12

Having roommates can be a way to save money on rent and utility payments.

Accepted Answer

True

Question 13

What is causing some employers to stop offering health insurance as an option to their employees?

Accepted Answer

All of these

Question 14

Which of the following is not a benefit of using credit cards?

Accepted Answer

interest earnings

Question 15

What is the definition of fixed-rate loan?

Accepted Answer

interest is made pre-loan and stays constant if payments are on time

Question 16

Late credit card payments can...

Accepted Answer

All of these

Question 17

If you used the 50-30-20 rule of budgeting, how much money would you be saving?

Accepted Answer

20%

Question 18

What is the definition of unsecured debt?

Accepted Answer

debt NOT tied to assets/that can't be repossessed if payments aren't made

Question 19

You can profit from investing in the stock market by earning dividends and selling the stock higher than you paid for it

Accepted Answer

True

Question 20

What is the definition of Certificate Of Deposit (CD)?

Accepted Answer

a savings certificate with a fixed interest rate and maturity date

Question 21

What is the definition of interest rate?

Accepted Answer

the percentage charged for the privilege of borrowing money

Question 22

Which investment vehicle represents an ownership interest in a company?

Accepted Answer

stock

Question 23

What is the definition of principal?

Accepted Answer

original amount of money saved or invested, separate from interest/earnings

Question 24

Which of the statements below BEST describes the relationship between risk and return when considering an investment?

Accepted Answer

Investors expect to earn a lower return when they invest in a lowrisk asset

Question 25

What is the definition of revolving credit?

Accepted Answer

open line of credit that can be used for anything if you're under the limit

Question 26

What is the definition of APR?

Accepted Answer

annual rate that is charged for borrowing expressed as a percentage number

Question 27

The _____ period is the amount of time you have to pay your credit card bill without paying interest on new purchases.

Accepted Answer

grace

Question 28

What is the definition of direct deposit?

Accepted Answer

automatic electronic deposit of net pay to an employee's set bank account

Question 29

Until what age can a child stay on their parent’s health insurance?

Accepted Answer

26

Question 30

What is the definition of FDIC?

Accepted Answer

the U.S. corporation insuring deposits in US banks against bank failure

Question 31

Which of the following does NOT help you build credit history?

Accepted Answer

debit card

Question 32

What are the two most important factors in calculating your credit score?

Accepted Answer

amounts owed and payment history

Question 33

What is the definition of dividend?

Accepted Answer

the portion of corporate profits paid out to stockholders

Question 34

What is the definition of loan?

Accepted Answer

an agreement where you are credited with a fixed amount for a fixed time

Question 35

What is the definition of compound interest?

Accepted Answer

interest earned on both the principal amount & any interest already earned

Question 36

What would be a good time to spend money from your Emergency Fund?

Accepted Answer

You lose your job but still have bills to pay.

ECA Finance

Questions 36

ECA Finance

Questions 36