Financial Literacy Vocab 3

Question 1

Which of the following will most affect your credit score

Accepted Answer

The amount of credit you are using

Question 2

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

Accepted Answer

your opportunity cost

Question 3

To avoid paying interest on a credit card you must

Accepted Answer

Pay the statement balance

Question 4

Which of these is not one of the three credit reporting agencies

Accepted Answer

Capital One

Question 5

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

Accepted Answer

Repair Costs

Question 6

Any loan where your house serves as collateral

Accepted Answer

Mortgage

Question 7

to find out 7.05% of a number you multiply that number by

Accepted Answer

.0705

Question 8

A loan's principal is

Accepted Answer

the total amount that you borrow

Question 9

A longer loan term will generally mean

Accepted Answer

lower payment

Question 10

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

Accepted Answer

Home insurance

Question 11

A loan's APR

Accepted Answer

Includes closing cost

Question 12

a $100 loan costs you $5 in interest in one year, what is the interest rate on this loan?

Accepted Answer

5%

Question 13

A traditional mortgage has a term and downpayment.

Accepted Answer

Has a 30 year term and a 20% down payment.

Question 14

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

Accepted Answer

5 years

Question 15

What cannot affect the amount you are billed for car insurance

Accepted Answer

Your Salary

Question 16

Increasing the interest rate lowers

Accepted Answer

none of these

Question 17

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 18

The escrow portion of your mortgage payment includes

Accepted Answer

Property Taxes

Question 19

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

Accepted Answer

Collateral

Question 20

Which of these is NOT an installment loan

Accepted Answer

Credit Card

Questions 20