Foundations in personal finance chapter 1 and 2 vocabulary

Question 1

a debt evidenced by a note which specifies the amount, interest rate and date of repayment

Accepted Answer

loan

Question 2

the granting of a loan and the creation of debt. any form of deferred payment

Accepted Answer

credit

Question 3

saving money over time for a large purchase

Accepted Answer

sinking fund

Question 4

a person or organization that uses a product or service

Accepted Answer

consumer

Question 5

the steps to financial success

Accepted Answer

five foundations

Question 6

interest paid on interest previously earned

Accepted Answer

compound interest

Question 7

a system in which goods are produced or distributed

Accepted Answer

economy

Question 8

the knowledge and skill set necessary to be an informed consumer

Accepted Answer

financial literacy

Question 9

an obligation of repayment owed by one party to another, mostly loan and interest

Accepted Answer

debt

Question 10

a fee paid by a borrower to the lender, calculated as a percent of the total amount.

Accepted Answer

interest

Question 11

all of the decisions of an individual regarding their money

Accepted Answer

personal finance

Question 12

500 dollars saved up in an event of needed use

Accepted Answer

emergency fund

Question 13

percentage paid to a lender for the use of borrowed money

Accepted Answer

interest rate

Questions 13