Vocab 3

Question 1

Annual fee

Answer 1

Yearly fee charged by credit card company for convenience of card

Question 2

Depreciation

Answer 2

Decline in value of a property

Question 3

Net income

Answer 3

Income recieved from take him pay
Allowance
Gifts
Interests

Question 4

Cosigning

Answer 4

Agreeing to take responsibility for loan payments of the other person fails to make them

Question 5

Diners club

Answer 5

First credit card company

Question 6

Consumer credit

Answer 6

Use of credit for personal needs

Question 7

Finance

Answer 7

Give or get money for

Question 8

Title

Answer 8

Document showing ownership

Question 9

Portion

Answer 9

Part

Question 10

Pledged

Answer 10

Promised

Question 11

Consolidation

Answer 11

Combine

Question 12

Bankruptcy

Answer 12

Legal process in which some or all of assets of a debtor are distributed amount creditors because debtor is unable to or his or her debts

Question 13

Credit card

Answer 13

Tool used to finance a purchase

Question 14

Closed end credit

Answer 14

Credit as a one time loan that is paid back over a specified period of time in payments of equal amounts

Question 15

Finance charge

Answer 15

Total dollar amount paid to use credit

Question 16

Lottery

Answer 16

Poor mans tax

Question 17

Credit

Answer 17

Arrangement to recieve cash goods or services now and pay for them in the future

Question 18

Grace period

Answer 18

Time period during which no finance charges will be added to account

Question 19

APR

Answer 19

Cost of credit on yearly basis expressed as a percentage

Question 20

MMD

Answer 20

Smallest amount one can pay and remain a borrower

Question 21

Credit report

Answer 21

Report showing payment history

Question 22

Open end credits

Answer 22

a pre-approved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments due date

Question 23

Simple interest

Answer 23

Computed only interest on the principle

Question 24

Devt snowball

Answer 24

Method of paying off debt smallest to largest

Question 25

Introductory rate

Answer 25

Interest rate charged to a customer during early stages of a loan rate often goes up after a specified period of time

Question 26

Loan term

Answer 26

Time frame that a loan agreement is in force and before or at end of which the time loan should either be repaid or renegotiated for another term

Question 27

Tax deduction

Answer 27

Expense a taxpayer is allowed to debut from taxable income

Question 28

Creditor

Answer 28

Eminity that lends money

Question 29

Credit score

Answer 29

Measur of a persons ability to make credit payments on time