Economics Personal Finance Test

Front

Something borrowers pledge to give up if they cannot repay loans

Back

Collateral

Front

An estimate of income and expenditure for a specific time period.

Back

Budget

Front

Uncertainty of return on an investment.

Back

Risk

Front

Cost of borrowing money on a yearly basis; considers the interest rate and other related fees on a loan.

Back

Annual Percentage Rate (APR)

Front

A number assigned to a person that indicates to lenders their likelihood to repay a loan.

Back

Credit Score

Front

A small amount paid to purchase protection against future losses in the form of insurance.

Back

Premiums

Front

What is the investment that has the highest risk yet the highest potential for returns?

Back

Stocks

Front

Rent, car payment, and student loans all represent

Back

Fixed costs.

Front

Groceries, gas, and March of Dimes charity donations all represent

Back

Variable costs.

Front

If there is an unforeseen expense, what could you NOT cut back on?

Back

Monthly Rent