Final Exam Part 2

Which of the following is an example of unsecured credit?

• car loan

• mortgage

• credit card

The annual percentage rate (APR) for a credit card refers to the

• credit limit of the card

• current balance of the card

• interest rate of the card

Having a good credit score leads to

• Higher interest rates on loans

• Lower interest rates on loans

• No change to interest rates on loans

Your monthly cost to have insurance is called the

• Deductible

• Copay

• Premium

True or False. The state of New Jersey requires all drivers to have car insurance.

• True

• False

_____ is about accumulating money for the short-term (ex. emergency fund) while ____ is about accumulating money for the long-term (ex. retirement).

• Saving, Saving

• Investing, Investing

• Investing, Saving

• Saving, Investing

Interest that applies not only to the initial principal of an investment or a loan, but also to the accumulated interest from previous periods

• Simple Interest

• Complicated Interest

• Compound Interest

• Type of fund with a portfolio constructed to match or track the components of a financial market.

• Stocks

• Bonds

• Mutual Funds

• Index Funds