Chapter 11: Consumer Mathematics 3

30 Questions | Total Attempts: 25

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Mathematics Quizzes & Trivia

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Questions and Answers
  • 1. 
    What is the Simple Interest?
    • A. 

      The interest that is equal to the principal times the rate times the time

    • B. 

      A guideline in which the year is considered to have 360 days

    • C. 

      The use of capital for income or profit

  • 2. 
    The use of capital for income or profit
    • A. 

      Banker's Rule

    • B. 

      Investment

    • C. 

      Mortgage

  • 3. 
    The method of charging interest on a credit card that is usually in the best interest of the consumer
    • A. 

      Finance Charge

    • B. 

      Closing Costs

    • C. 

      Arg.Daily Bal. Method

  • 4. 
    The money that a bank is willing to give you
    • A. 

      Credit

    • B. 

      Principal

    • C. 

      Mortgage

  • 5. 
    The amount of the cash that a buyer must prepay on an item in order to receive a loan or mortgage
    • A. 

      Mortgage

    • B. 

      Simple interest

    • C. 

      Down payment

  • 6. 
    A list or table that gives the payment number in a loan and the breakdown of how much money is paid to principal and how much to interest for each payment
    • A. 

      Amortization schedule

    • B. 

      Percent

    • C. 

      Principal

  • 7. 
    The total amount of money a borrower must pay to use a lender's money
    • A. 

      Fixed Investment

    • B. 

      Finance charge

    • C. 

      Credit

  • 8. 
    The type of interest that allows the interest to earn interest
    • A. 

      Compound interesr

    • B. 

      Banker's Rule

    • C. 

      APY

  • 9. 
    A type of loan where the interest is paid at the time the borrower receives the loan
    • A. 

      Discount note

    • B. 

      Amortization Schedule

    • C. 

      ARM

  • 10. 
    A guideline in which the year is considered to have 360 days
    • A. 

      Fixed Investment

    • B. 

      Principal

    • C. 

      Banker's Rule

  • 11. 
    A person other than the borrower who will guatantee the repayment of a loan
    • A. 

      Investment

    • B. 

      Cosigner

    • C. 

      Interest

  • 12. 
    A ratio of some number to 100
    • A. 

      Percent

    • B. 

      Interest

    • C. 

      APY

  • 13. 
    The difference between the appraised value of a home and the principal balance remaining on the mortgage
    • A. 

      Fixed Investment

    • B. 

      Variable Investment

    • C. 

      Equity

  • 14. 
    The primary method used to compute unearnd on an installment loan
    • A. 

      Unpaid balance method

    • B. 

      Actuarial method

    • C. 

      Arg.Daily Bal method

  • 15. 
    One percent of the loan mortgage
    • A. 

      Point

    • B. 

      Percent

    • C. 

      APY

  • 16. 
    The method of charging interest on a credit card in which interest is only paid on the previous outstanding balance
    • A. 

      Actuarial method

    • B. 

      Arg. daily Bal method

    • C. 

      Unpaid balance method

  • 17. 
    A US supreme court decision that specified how partial payments were to be applied to a loan
    • A. 

      US rule

    • B. 

      Banker's Rule

    • C. 

      Partial payment

  • 18. 
    The collateral that is pledged by the borrower to the lender that the lender may sell or keep if the borrower defaults on the loan
    • A. 

      Interest

    • B. 

      Sercurity

    • C. 

      Principal

  • 19. 
    A long-term loan usually used to purchase a house
    • A. 

      Equity

    • B. 

      Amortization Schedule

    • C. 

      Mortgage

  • 20. 
    The simple interest rate that gives the name amount of interest over the same period of time as a compound rate
    • A. 

      ARM

    • B. 

      APY

    • C. 

      APR

  • 21. 
    A type of investment in which the principal is guarantee and the interest is computed at a fixed rate
    • A. 

      Fixed Investment

    • B. 

      Variable Investment

    • C. 

      Investment

  • 22. 
    The true rate of interest charged for a loan
    • A. 

      ARM

    • B. 

      APR

    • C. 

      APY

  • 23. 
    A type of investment, such as stocks, in which the investor has a chance of losing money
    • A. 

      Closing costs

    • B. 

      Fixed investment

    • C. 

      Variable Investment

  • 24. 
    The money that is paid by the borrower for the use of the lender's money
    • A. 

      Principal Payment

    • B. 

      Interest

    • C. 

      Credit

  • 25. 
    A credit card is the most common type of this loan
    • A. 

      Open -end Installment loan

    • B. 

      Total Installment price

    • C. 

      Down Payment

  • 26. 
    A type of mortgage in which the rate of interest can change
    • A. 

      APY

    • B. 

      ARM

    • C. 

      APR

  • 27. 
    The cost incurred in acquiring a mortgage, these may include attorney fees, survey costs, appraisal fees, etc...
    • A. 

      Total Installment price

    • B. 

      Finance charge

    • C. 

      Closing costs

  • 28. 
    The amount of money initially deposited into an account or the amount of money borrowed from a lender
    • A. 

      Simple Interest

    • B. 

      Principal

    • C. 

      Finance charge

  • 29. 
    The interest charged in advance on a discount note
    • A. 

      Bank discount

    • B. 

      Discount note

    • C. 

      Down payment

  • 30. 
    The sum of all monthly payments and the down payment
    • A. 

      Closing Costs

    • B. 

      Finance charge

    • C. 

      Total Installment price