Business Math and Financial Math Final Practice

Front

What is a specific kind of account that earns interest?

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Savings Account: A savings account is a deposit account held at a financial institution that provides a modest interest rate. It is used to save money while earning interest.

Front

What is a monthly report that compares the amount that you have spent to the amounts that you have budgeted?

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Expense Summary: An expense summary is a financial report that outlines the actual spending against the budgeted amounts, helping individuals track their financial performance.

Front

What is a loan you repay in equal payments over a specified period of time?

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Installment Loan: An installment loan is a type of loan that is repaid over time with a set number of scheduled payments, typically monthly.

Front

What provides financial protection for a family in case the main source of income dies?

Back

Life Insurance: Life insurance is a contract that pays a designated beneficiary a sum of money upon the death of the insured person, providing financial security.

Front

What is the amount of money earning interest called?

Back

Principal: The principal is the original sum of money borrowed or invested, on which interest is paid.

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What is the term for a financial plan that outlines expected income and expenses?

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Budget: A budget is a financial plan that estimates future income and expenses, helping individuals manage their finances.

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What is the term for a loan secured by real property?

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Mortgage Loan: A mortgage loan is a type of loan specifically used to purchase real estate, where the property serves as collateral.

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What is the term for a percentage added to the cost of goods or services?

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Sales Tax: Sales tax is a tax imposed on sales of goods and services, calculated as a percentage of the sale price.

Front

What is the term for a fund set aside for unexpected expenses?

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Emergency Fund: An emergency fund is a savings account specifically set aside for unexpected expenses or financial emergencies.

Front

What is the term for regular, fixed payments made for a service or product?

Back

Fixed Expenses: Fixed expenses are costs that do not change from month to month, such as rent or insurance premiums.