Term
| What is an example of non-installment credit? |
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Definition
| Credit card (correct answer) |
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Term
| What is an example of installment credit? |
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Definition
| Home mortgage (correct answer) |
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Term
| What is the relationship between risk and return? |
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Definition
| The higher the possible return, the higher the risk. (correct answer) |
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Term
| The average number of vacation days given annually to American workers who have just started a full-time, year-round job is closest to: |
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Definition
| Two weeks. (correct answer) |
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Term
| What is the advantage of a fixed rate mortgage over a variable rate mortgage? |
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Definition
| Fixed rate mortgages generally have lower rates than variable rate mortgages. (correct answer) |
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Term
| Which of the following credit card users is likely to pay the GREATEST dollar amount in finance charges per year if they all charge the same amount per year on their cards? |
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Definition
| Paul, who always just pays the minimum amount each month. (correct answer) |
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Term
| Describe the relationship between insurance and risk. |
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Definition
| Insurance is an arrangement between an individual and an insurer to protect the individual against risk. (correct answer) |
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Term
| If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account? |
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Definition
| Income tax may be charged on the interest if your income is high enough. (correct answer) |
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Term
| Matthew and Alicia just had a baby. They receied money as baby gifts and want to put it away for the baby's education. Which of the following is likely to have the highest growth over the next 19 years? |
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Definition
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Term
| Which of the following is NOT true of a debit card? |
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Definition
| It takes a few days for the money to be deducted from your account. (correct answer) |
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