Personal F

Notes

Personal Finance- Practice Final Exam Credit Part 1 – Fill-in-the-Blank 1. __________ is a credit type where you borrow up to a limit and your balance changes based on use. creditRevolvingdebtAPR 2. When you borrow money and must repay it, you are in __________. 3. __________ is the yearly cost of borrowing money. 4. __________ is something valuable a lender can take if you don’t pay back a loan. collateralEmergency 5. An __________ is money saved for emergencies only. fundinstallment 6. A __________ is a loan with the same payment every month. loaninterestcompound 7. __________ is the extra cost added when you borrow money. 8. __________ is interest earned on the principal and past interest. interestTerm 9. __________ is the total amount of time you have to repay a loan. 10. __________ means using borrowed money you will pay back later. LengthcreditPrincipalsimple 11. The original amount you borrow is called the __________. 12. __________ is interest based only on the principal. interest unsecured 13. __________ is debt with no collateral. Debtsecured 14. __________ is debt with collateral. Debt Part 2 – Multiple Choice 1. What makes credit cards risky? (Choose 2) A. Low interest ...