5 Written questions
5 Matching questions
- Disability Insurance
- Tax Credit
- Payroll Deduction
- Time Value of Money
- a The potential of an investment to increase in value through periodically compounded earnings.
- b The presumption that a specific borrower has sufficient assets, income, and/or inclination to repay a loan.
- c An amount an employer withholds from a paycheck. Mandatory deductions include various taxes. Voluntary deductions include loan payments, charitable contributions, and direct deposits into financial institution accounts.
- d Replaces a portion of income lost when a person cannot work because of illness or injury.
- e An amount that a taxpayer who meets certain criteria can subtract from tax owed. Examples include a credit for earned income below a certain limit and for qualified post-secondary school expenses. (See Tax deduction and Tax exemption.)
5 Multiple choice questions
- A risk management tool that protects an individual from specific financial losses under specific terms and premium payments, as described in a written policy document.
- A legal declaration of a person's wishes for the disposition of his or her estate after death.
- Calculating interest on both principal and previously earned interest.
- Stock ownership in a corporation.
- The quality of an asset that permits it to be converted quickly into cash without loss of value. For example, a mutual fund is more liquid than real estate.
5 True/False questions
Open-end Credit → An agreement with a financial institution that gives a borrower the use of money up to a specified limit for an indefinite time as long as repayment of the outstanding balance and finance charge proceeds on schedule; also known as revolving credit or a revolving line of credit. A credit card is an example.
Contract → 1. Cost of borrowing money. 2. Earnings from lending money.
Repossession → Confiscation of collateral, often without notice, if a borrower defaults on a loan.
Collection Agency → Physical objects—such as fine art, stamps, and antiques—that an investor buys in the hope that they will grow in value.
Mortgage → A long-term loan to buy real estate, that is, land and the structures on it.