Unit 3 test review

Which type of investment has the highest risk and highest potential return?

• Bonds

• Real Estate

• Stocks

• Savings Account

Which form of borrowing carries the highest interest rate?

• Credit card

• Mortgage

• Personal loan

• Student loan

Income tax is an example of this type of tax - high income earners pay higher rates.

• Progressive tax

• Regressive tax

• Flat tax

• Indirect tax

People buy this to compensate for loss of income or assets if something goes wrong.

• Insurance

• Savings account

• Investment

• Loan

If you are willing to pay a higher premium, you can have a lower ______ - what you pay before insurance kicks in.

• deductible

• premium

• coverage

• claim

This type of identity theft involves stealing someone’s credit card information using a device attached to the payment machine.

• Phishing

• Skimming

• Hacking

• Spoofing

The FDIC insures deposits in this financial institution for up to $250,000.

• Credit Union

• Commercial Bank

• Savings and Loan Association

• Investment Bank

This type of interest grows as you earn more money.

• Compound Interest

• Simple Interest

• Fixed Interest

• Variable Interest

This type of payment is a revolving loan that you can repay every month or over time.

• Credit Card

• Debit Card

• Cash

• Check

A Bank is a financial institution that:

• provides loans and accepts deposits

• sells groceries

• manufactures cars

• offers medical services