Unit 2

Question 1

Checking account

Answer 1

an account at a bank against which checks can be drawn by the account depositor.

Question 2

Savings account

Answer 2

a bank account that earns interest.

Question 3

Balance

Answer 3

An amount of money you have in your account.

Question 4

Credit card

Answer 4

a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.

Question 5

Debit card

Answer 5

a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.

Question 6

Deposit

Answer 6

a sum of money placed or kept in a bank account, usually to gain interest.

Question 7

Direct deposit

Answer 7

the electronic transfer of a payment directly from the account of the payer to the recipient’s account.

Question 8

Withdrawal

Answer 8

A withdrawal involves removing funds from a bank account, savings plan, pension, or trust.

Question 9

Loan

Answer 9

a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

Question 10

Earnings

Answer 10

money obtained in return for labor or services

Question 11

Interest

Answer 11

Payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate.

Question 12

Fee

Answer 12

a payment made to a professional person or to a professional or public body in exchange for advice or services.

Question 13

Transaction

Answer 13

an instance of buying or selling something; a business deal.

Question 14

Identity theft:

Answer 14

the crime of obtaining the personal or financial information of another person for the sole purpose of assuming that person’s name or identity to make transactions or purchases.

Question 15

Debt

Answer 15

an amount of money borrowed by one party from another.

Question 16

Transfer

Answer 16

The act of transferring money from one place to another place.

Question 17

Compound interest

Answer 17

The addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.

Question 18

Charge

Answer 18

an amount of money that you have to pay for something.

Question 19

Personal check

Answer 19

a check drawn against funds deposited in your personal checking account.

Question 20

Penalty

Answer 20

A fine (penalty) or mulct is a penalty of money that a court of law or other authority decides has to be paid as punishment for a crime.

Question 21

Budget

Answer 21

An estimate of income and expenditure for a set period of time.

Question 22

Total

Answer 22

comprising the whole number or amount.

Question 23

Value

Answer 23

the regard that something is held to deserve; the importance, worth, or usefulness of something.

Question 24

Income

Answer 24

money received, especially on a regular basis, for work or through investments.
Gross income: The amount of money a person earns in one year before taxes and includes income from all sources.

Question 25

Net income

Answer 25

an entity’s income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period.

Question 26

Sales tax

Answer 26

a tax on sales or on the receipts from sales.

Question 27

Deduction

Answer 27

the action of deducting or subtracting something.

Question 28

Gross income

Answer 28

The amount of money a person earns in one year before taxes and includes income from all sources.

Question 29

Coupon

Answer 29

a voucher entitling the holder to a discount for a particular product.

Question 30

Discount

Answer 30

a deduction from the usual cost of something, typically given for prompt or advance payment or to a special category of buyers.

Question 31

Price

Answer 31

the amount of money expected, required, or given in payment for something.

Question 32

Price range

Answer 32

the highest and lowest prices recorded within a given time on a market.

Question 33

Unit price

Answer 33

the price for a single unit of measure of a product sold in more or less than the single unit.

Question 34

Sale

Answer 34

the exchange of a commodity for money; the action of selling something.

Question 35

Credit score

Answer 35

a number assigned to a person that indicates to lenders their capacity to repay a loan.