Financial Terms
Incentives to choose and use a specific type of credit card.
What are rewards?
Income minus what equals either savings or deficit
Expense
Interest earned from $1500 invested for two years at 4%.
What is $120?
Used to secure a loan.
What is collateral?
Food, entertainment, gifts and repairs are examples of these.
What are variable expenses?
Bank balance after investing $6000 for 5 years at 3.25%
What is $6, 975?
The period of time between borrowing the money and having to pay it back with interest.
What is a grace period?
Starting value for a loan or investment.
What is a principal?
Interest earned after investing $5000 for 14 weeks at 5% per annum.
$ 67.31
An option provided by most credit cards. Typically has higher and immediate interest.
What is a cash advance?
A type of transaction where money is added to your bank account.
What is a deposit?
Type of interest that is payed on the principal plus any earned interest.
What is compound interest?
The lowest amount you can repay on a loan and maintain good credit standing.
What is a minimum payment?
A useful bank account service to help avoid paying high fees in case you have a negative balance.
What is overdraft protection?
Amount of money needed in a bank account to reduce or eliminate fees.
What is a minimum balance?