FL Week 4 Debt Vocabulary Quizizz

What is an Annual Fee in the context of credit cards?

• A one-time setup fee for opening a new credit card account.

• A yearly fee that is charged by the credit card company for the convenience of the credit card.

• The interest accrued on the credit card balance over a year.

• A fee for transferring the balance from one credit card to another.

What does APR stand for and what does it represent?

• Annual Percentage Rate; the total yearly cost of funds over the term of a loan.

• Annual Processing Rate; the fee for processing the loan each year.

• Annual Payment Requirement; the minimum amount required to be paid yearly on a loan.

• Annual Profit Rate; the profit a bank makes from a loan annually.

What is the purpose of a Credit Report?

• To provide a detailed list of all personal expenses and savings.

• To report a person's creditworthiness, including credit cards, late payments, bankruptcies, and savings balances.

• To record the number of credit cards a person has.

• To track a person's annual income and tax payments.

What is a Debt Snowball?

• A method of saving money by rolling over debt from one account to another.

• A strategy where debt is frozen to prevent interest from accruing.

• A preferred method of debt repayment that involves paying off debts from smallest to largest balance.

• A financial crisis that occurs when one accumulates too much debt.

What does Depreciation refer to in financial terms?

• The appreciation of assets over time due to inflation.

• The division of an asset's cost over its useful life.

• A decrease or loss in value of an asset over time.

• The process of devaluing a currency against foreign currencies.

What is a Tax Deduction?

• A mandatory fee paid to the government based on income level.

• A refund given by the government for certain qualifying expenses.

• A donation or expense that can be deducted from one's taxable income.

• The amount of tax that a person is required to pay on an annual basis.

What is a fee paid by a borrower to the lender for the use of borrowed money, typically calculated as a percentage called?

• Loan

• Interest

• National Debt

• Garnishment

Which type of loan is given to borrowers based on their financial resources or ability to repay the loan, without requiring collateral?

• Secured Loan

• Unsecured Loan

• Fixed Rate Loan

• Home Equity Loans

What is the term for a loan that is backed by collateral, such as property or a car?

• Unsecured Loan

• Fixed Rate Loan

• Secured Loan

• Variable Rate Loan

What type of loan maintains the same interest payment and principal amount over the life of the loan?

• Variable Rate Loan

• Home Equity Loans

• Fixed Rate Loan

• Reverse Mortgage