Debt Finance Terms Finance Quiz
100
What is something, typically money, that is owed or due. The state of owing money
The definition of debt.
100
A loan for which one significant lump sum payment is due at maturity.
What is a Balloon Loan?
100
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?
200
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?
200
A lump-sum payment at a maturity of a balloon loan.
What is a balloon payment?
200
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?
300
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
300
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?
300
Fall
If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?
400
What are rewards, low interest, balance transfer, secured
What are the four main types of credit cards?
400
Funds available for borrowing.
What is credit?
400
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.
500
What is monthly
What types of payments do you make on a credit card
500
Any assets ready to be used in the production of new assets .
What is capital?
500
False
True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund.






Financial Trivia

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