Financial Literacy Terms

Question 1

A written contract between a borrower and a lender that sets terms and conditions

Accepted Answer

loan

Question 2

A demand deposit account subject to withdrawal of funds electronically or by check.

Accepted Answer

checking account

Question 3

The act of evaluating and setting the value of a specific piece of personal or real property.

Accepted Answer

appraisal

Question 4

Offered by banks to let account holders access certain account information using a smart phone.

Accepted Answer

mobile banking

Question 5

The cost of credit on a yearly basis, expressed as a percentage.

Accepted Answer

APR

Question 6

A number, roughly between 300 and 800, that measures an individual's credit worthiness.

Accepted Answer

credit score

Question 7

The outstanding balance on a loan, excluding interest and fees.

Accepted Answer

principal

Question 8

The cost of using money.

Accepted Answer

interest

Question 9

The percentage of total debt payments divided by the gross income. High ratio is not good.

Accepted Answer

DTI

Question 10

A written request for credit made in accordance with the procedures established by a creditor.

Accepted Answer

loan application

Questions 10