Unit 6 and Unit 7 test

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These are charged when an account holder spends more money than they have in their account, the fee typically ranging from 25 to 40 per occurrence.

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Overdraft fees

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This is a financial plan that outlines an individual's income, expenses, and savings goals over a set period of time, typically a month or a year. It is a tool for managing personal finances and ensuring that expenses do not exceed income.

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Personal Budget

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This refers to the act of purchasing a property outright and becoming the legal owner of the house and the land it sits on. Here, they are responsible for maintaining the property, paying property taxes, and any repairs or improvements that may be needed.

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Owning a home

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This is a loan used to purchase a property, such as a house or a commercial building. The property being purchased serves as collateral for the loan, meaning that if the borrower is unable to make their payments, the lender may foreclose on the property and sell it to recover their losses.

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Mortgage

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These are charged when a cardholder fails to make the minimum payment by the due date.

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Late fees

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This is often used in commercial real estate or for high-end rental properties where tenants may have specific needs or requirements that are not met by a standard rental agreement. This is similar to renting but usually refers to longer-term agreements, typically six months or more.

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Lease

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This is a type of financial account that is used to hold and manage investments. These are used by individuals and institutions to grow their wealth over time by investing in assets that are expected to increase in value. Common examples are individual retirement accounts (IRAs), 401(k) plans, brokerage accounts, and college savings plans.

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Investment account

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These are a common source of credit for consumers, offering a revolving line of credit that can be used for purchases and cash advances. They often come with rewards programs and other perks, but may also charge high interest rates and fees for late payments or cash advances.

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Credit cards

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This refers to the amount of money needed to sustain a certain standard of living, including basic necessities such as housing, food, transportation, healthcare, and other essential expenses. This can vary depending on factors such as location, inflation, market trends, and individual lifestyle choices. This is often used as a benchmark for determining salaries, benefits, and other forms of compensation.

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Cost of living

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Amortization

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The act of paying back a debt or loan over a period of time, typically according to the terms of an agreement between the borrower and the lender, involving regular payments that may include interest charges and fees.