Chapter 2 Flashcards
1
Q
Collateral
A
An asset that is held as security against the repayment of a loan
2
Q
Line of credit
A
A pre approved loan that offers immediate access to funds, up to a pre-defined limit, with a minimum monthly payment based on accumulated interst
3
Q
Bank of Canada prime rate
A
A value set by canadas central bank, which other financial institutions use to set their interest rates
4
Q
Lease
A
A contract for purchasing a property
5
Q
Equity
A
The difference between the value of an item and the amount still owing on it
6
Q
Asset
A
An item or a portion of an item owned
7
Q
Appreciatiom
A
Increase in the value of an asset over time
8
Q
Depreciation
A
Decrease in the value of an asset over time
