Personal Finance

What is nominal interest rate?

• The rate quoted in loan and deposit agreements.

• Nominal interest rate is the interest rate that includes fees and charges.
• Nominal interest rate is the interest rate BEFORE adjusting for inflation.

• Nominal interest rate is the interest rate that remains constant over time.

What are Externalities?

• Externalities are only experienced by the parties directly involved in economic activities.
• Externalities have no impact on the economy.
• Externalities are always intentional consequences of economic activities.
• Third-party unintended consequences.

What is Nondurable good?

• Product with a lifespan of less than three years.

• Nondurable goods are products that have an unlimited lifespan.
• Nondurable goods are products that are never consumed.
• Nondurable goods are products that last for more than a decade.

What is a contract?

• A contract is a legally binding agreement between two or more parties.
• A contract is a type of computer program
• A contract is a type of sandwich
• A contract is a type of bird

What is an Overdraft fee?

• A charge for using an ATM
• The fee a bank charges if someone spends more money than is in their bank account

• A penalty for closing a bank account
• A fee charged for depositing money into a bank account

What is the definition of Interest rate.

• The cost of insurance
• Rate paid or charged for use of money

• The value of a currency
• The price of a stock

What is Inflation

• the general rise of prices

• Inflation is the rate at which the general level of prices for goods and services is irrelevant.
• Inflation is the rate at which the general level of prices for goods and services remains constant.
• Inflation is the rate at which the general level of prices for goods and services is falling.

What is Real interest rate?

• Real interest rate is the interest rate without any adjustments.
• Real interest rate is the interest rate adjusted for exchange rates.
• Real interest rate is the interest rate adjusted for taxes.
• The rate an investment is expected to earn, after inflation

What is Compound interest?

• Calculating interest earned based on original deposited amount plus interest already earned

• Compound interest is the interest calculated without taking into account previous periods.
• Compound interest is the interest calculated daily instead of annually.
• Compound interest is the interest calculated only on the initial principal amount.

What is a Checkings account?

• A checking account is a type of bank account that only allows withdrawals.
• A checking account is a type of bank account that offers high interest rates.
• A checking account is a type of bank account that requires a minimum balance.
• An account at a financial institution that allows easy access to an individual’s funds through a debit card or checks.