Foundations in Personal Finance Chapter 1 - Money In Review

A person or organization that uses a product or service.

• Consumer
• Credit
• Debt
• Buyer

The granting of a loan and the creation of debt; any form of deferred payment.

• Interest
• Credit
• Loan
• Bank

An obligation of repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest.

• Loan
• Debit
• Buyer
• Debt

A system by which goods and services are produced and distributed.

• Wal-mart
• Personal Finance
• Economy
• Distribution Center

A fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal (original loan amount)

• Interest
• Budget
• Financial Literacy
• Personal Finance

The knowledge and skillset necessary to be an informed consumer and manage finances effectively

• Interest
• Budget
• Financial Literacy
• Personal Finance

A debt evidenced by a "note", which specifies the principal amount, interest rate and date of repayment.

• Bill
• Debt
• Interest
• Loan

All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.

• Personal Finance
• Financial Literacy
• Budget
• Banking

Learning the language of money is not that important because you will be able to depend on financial planners to manage your money.

• True

• False

Which of the following is NOT a reason credit is marketed so heavily to consumers in the United States?

• There is a strong consumer demand for big ticket items.

• The credit industry has become extremely profitable.

• The use of credit is not socially accepted in the United States.

• After World War I, credit laws in the United States were relaxed in an attempt to create a mainstream alternative to loan sharks for the working class.