30 Questions
| Total Attempts: 72

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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

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