ECONOMICS
MONEY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
true
|
|
|
false A checking account is a deposit account held at a financial institution that allows withdrawals and deposits
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -To put it simply, interest is the price you pay to borrow money – whether that’s a student loan, a mortgage or a credit card. When you borrow money, you generally must pay back the original amount you borrowed, plus a certain percentage of the loan amount as interest.
Detailed explanation-2: -Interest Rate This is a percentage of the loan amount that you’re charged for borrowing money. It is a re-occurring fee that you’re required to repay, in addition to the principal. The interest rate is always recorded in the promissory note.
Detailed explanation-3: -Credit allows you to get money upfront with the promise to repay it in the future, often with interest. Creditworthiness refers to a borrower’s ability to pay what they’ve borrowed. Lenders judge creditworthiness in many different ways, and they may use things like credit reports and credit scores to help.
Detailed explanation-4: -It refers to the total cost of your borrowing for a year. This is more than the interest rate itself because it includes the interest rate plus any arrangement fees.