Debt | Finance Terms | Finance Quiz |
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What is something, typically money, that is owed or due. The state of owing money
The definition of debt.
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A loan for which one significant lump sum payment is due at maturity.
What is a Balloon Loan?
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More than 102
Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have?
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What is "if it won't go up in value or generate income , you shouldn't go into debt to buy it"
ex. cars, clothes, goods/ services, credit cards
What is BAD debt?
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A lump-sum payment at a maturity of a balloon loan.
What is a balloon payment?
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less
Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?
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What is "it takes money to make money"
Good debt helps you generate income and increases your net worth ex. college education, small business, investments
Define GOOD debt
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Buyback is a stock related term that refers to the buying back of stocks or bonds by the issuing company.
What is a Buy Back?
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Fall
If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?
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What are rewards, low interest, balance transfer, secured
What are the four main types of credit cards?
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Funds available for borrowing.
What is credit?
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True
True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.
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What is monthly
What types of payments do you make on a credit card
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Any assets ready to be used in the production of new assets .
What is capital?
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False
True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund.
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