Finance Vocabulary Quiz

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What are 'Assets'? Choose the correct answer:

Debts owed to others
Legal documents for ownership
Values owned by a person or company
Expenses incurred by a business

'Interest' is defined as: Choose the correct answer:

The principal amount of a loan
Ownership in a company
The cost of borrowing money
A fixed annual income

Which term describes money saved or earned from an investment over time? Choose the correct answer:

Budget
Liability
Dividend
Profit

What does 'Mortgage' refer to? Choose the correct answer:

An investment strategy
A loan for buying property
A type of insurance policy
Bankruptcy proceedings

'Equity' in a company represents: Choose the correct answer:

The total debts of the company
The interest rate on loans
The ownership interest in the company
The yearly revenue

Example sentence: "After reviewing my monthly expenses, I adjusted my __________ to save more money."Choose the correct answer:

Dividend
Asset
Budget
Mortgage

The 'Credit Score' is important because it: Choose the correct answer:

Determines your salary
Measures creditworthiness
Represents company profits
Calculates interest rates on savings

Example sentence: "To finance the new car, I took out a __________ at a reasonable interest rate." Choose the correct answer:

Dividend
Loan
Budget
Profit

'Risk' in investment terms refers to: Choose the correct answer:

Guaranteed profits
The potential for financial loss
Fixed interest rates
Annual revenue

'Premium' in insurance terms is: Choose the correct answer:

The coverage amount
The claim process
The payment for the policy
A type of investment