Personal Finance

Which of the following is correct in terms of interest rates, beginning with the highest?

• Checking - Savings - Money Market - Certificate of Deposit
• Money Market - Checking - Certificate of Deposit - Savings
• Certificate of Deposit - Money Market - Savings - Checking
• Savings - Checking - Certificate of Deposit - Money Market

A financial agreement between a lender and a borrower, who promises to repay the lender at a later date--generally with interest, is called

• bartering.
• credit.
• contracting.
• investing.

The ability you have to convert any asset into cash quickly; also how “easy” it is to buy and sell assets.

• Fluidity
• Liquidity
• Accessibility
• Transferability

Various items taken out of your income; may be voluntary or involuntary.

• Dividends
• Profits
• Transfer Payments
• Deductions

The process of allocating capital in a way that reduces the exposure to any one particular asset or risk; a common path is to reduce risk or volatility by investing in a variety of assets.

• Diversification
• Channeling
• Investing
• Day Trading

The ______________________ is the percentage charged by a lender on either the original amount loaned, or the remaining balance of the loan.

• collateral
• principal
• deficit
• interest rate

The initial (original) loan amount is called the ________________.

• principal
• collateral
• deficit
• interest rate

A credit card, which can be used repeatedly to borrow money, is an example of _______________ credit.

• open
• revolving
• installment
• closed

Which of the following is NOT an example of installment credit?

• mortgage payment
• car payment
• student loan payment
• utility payment

_________________ interest is calculated on the initial principal, plus the accumulated interest of previous periods of a deposit or loan.

• Simple
• Annual
• Compound
• Daily