Debt Terms

What is an annual fee?

• A fee charged monthly for using a credit card

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

• A fee charged for late payments

• A fee for exceeding the credit limit

What does APR stand for?

• Annual Payment Rate

• Annual Percentage Rate

• Annual Penalty Rate

• Annual Premium Rate

Who is a consumer?

• A person who sells products

• A person or organization that uses a product or service

• A person who manufactures goods

• A person who invests in stocks

What is credit?

• The act of saving money

• The granting of a loan and the creation of debt

• The process of earning interest

• The act of paying off a loan

What is a credit card?

• A card that stores personal information

• A type of card issued by a bank that allows users to finance a purchase

• A card used for identification purposes

• A card that tracks spending habits

What is a credit report?

• A summary of monthly expenses

• A detailed report of an individual's credit history

• A list of all bank accounts

• A report on annual income

What does a credit score measure?

• An individual's income level

• An individual's credit risk

• An individual's spending habits

• An individual's savings rate

What is debt?

• An investment in stocks

• An obligation of repayment owed by one party to another

• A form of savings

• A type of insurance

What is the debt snowball method?

• A method of saving money

• A method of debt repayment that organizes debts from smallest to largest

• A method of investing in bonds

• A method of calculating interest

What is depreciation?

• An increase in value

• A decrease or loss in value

• A method of calculating interest

• A type of loan