CRM UNIT 4 VOCABULARY

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What is collateral?

Back

Collateral is an asset that a borrower offers to a lender to secure a loan. If the borrower fails to repay the loan, the lender can take possession of the collateral.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

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What is net income?

Back

Net income is the amount of money you receive after all deductions (like taxes and other withholdings) are subtracted from your gross income.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Front

How does a great credit score affect loan terms?

Back

A great credit score typically results in a lower Annual Percentage Rate (APR) on loans, making borrowing cheaper.

Front

Who is a lender?

Back

A lender is a person or institution that loans money to individuals or businesses.

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CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

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What is a budget?

Back

A budget is a plan for spending and saving money, outlining expected income and expenses over a specific period.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Front

What is principal in the context of loans?

Back

Principal is the original sum of money borrowed in a loan or the amount still owed on which interest is calculated.

Tags

CCSS.7.RP.A.3

Front

What is interest?

Back

Interest is the cost of borrowing money, usually expressed as a percentage of the principal, paid to the lender.

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CCSS.7.RP.A.3

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What is a loan?

Back

A loan is a sum of money that is borrowed and is expected to be paid back with interest.

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CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

Front

What does APR stand for?

Back

APR stands for Annual Percentage Rate, which is the annual rate charged for borrowing or earned through an investment.

Tags

CCSS.7.RP.A.3

Front

What is gross income?

Back

Gross income is the total income earned before any deductions, such as taxes or retirement contributions.