Financial Literacy Vocab 2

Question 1

You decide to go fish instead of studying for your economics test. The economics knowledge is

Accepted Answer

your opportunity cost

Question 2

A longer loan term will generally mean

Accepted Answer

lower payment

Question 3

The escrow portion of your mortgage payment includes

Accepted Answer

Property Taxes

Question 4

What protects your home in case of fire damage, wind damage, or other natural disasters?

Accepted Answer

Home insurance

Question 5

Something the lender can come and take away if you fail to pay back a loan

Accepted Answer

Collateral

Question 6

A loan's principal is

Accepted Answer

the total amount that you borrow

Question 7

What cannot affect the amount you are billed for car insurance

Accepted Answer

Your Salary

Question 8

A security deposit is something you pay to

Accepted Answer

Rent an apartment

Question 9

That your car is worth only half of what you paid for it when it was new is an example of

Accepted Answer

Depreciation

Question 10

Smart comparison shopping means you are considering

Accepted Answer

The marginal cost vs marginal benefit

Question 11

A contract has all of the following except

Accepted Answer

a gift

Question 12

Which of these could reasonably be the term of a car loan?

Accepted Answer

5 years

Question 13

Any loan where your house serves as collateral

Accepted Answer

Mortgage

Question 14

Owning a home saves you money in all of the following ways except

Accepted Answer

Repair Costs

Question 15

An email that tries to trick you into giving personal information is an example of

Accepted Answer

phishing

Questions 15