Ramsey Classroom Final Exam
Questions with complete solutions
Fixed Expense - -expense that remains the same from month to month
- Variable Expense - -expense that varies in dollar amount from month to
month but that you can expect to have every month
- Intermittent Expense - -expense that occurs at various times throughout
the year and tends to be in large, lump sums
- Interest Rate - -the percentage of principal charged by the lender for the
use of its money
- Compound Interest - -interest paid on interest previously earned
- Principal - -the initial amount of money invested or borrowed
- Rate of Return - -the measure of an investment's profit or loss, usually
expressed as a percentage of the initial investment
- Inflation - -the persistent rise in the cost of goods and services over time
- Time Value of Mone - -concept that an amount of money is worth more
today than in the future due to earning potential
- Revolving Credit - -credit that automatically renews whenever a payment
is made to reduce the debt
- Installment Credit - -a loan for a fixed amount of money that's paid back in
monthly installments
- Private Student Loans - -loans made by banks, credit unions, or other
organizations with terms and conditions set by the lender, including higher
or variable interest rates
- Federal Student Loans - -loans made by the government with terms and
conditions set by law; often have a lower fixed interest rate
- Subsidized Loans - -federal student loans that are based on a student's
financial need and don't accrue interest for a set period of time
- Unsubsidized Loans - -federal student loans that aren't based on a
student's financial need and start accruing interest immediately
Questions with complete solutions
Fixed Expense - -expense that remains the same from month to month
- Variable Expense - -expense that varies in dollar amount from month to
month but that you can expect to have every month
- Intermittent Expense - -expense that occurs at various times throughout
the year and tends to be in large, lump sums
- Interest Rate - -the percentage of principal charged by the lender for the
use of its money
- Compound Interest - -interest paid on interest previously earned
- Principal - -the initial amount of money invested or borrowed
- Rate of Return - -the measure of an investment's profit or loss, usually
expressed as a percentage of the initial investment
- Inflation - -the persistent rise in the cost of goods and services over time
- Time Value of Mone - -concept that an amount of money is worth more
today than in the future due to earning potential
- Revolving Credit - -credit that automatically renews whenever a payment
is made to reduce the debt
- Installment Credit - -a loan for a fixed amount of money that's paid back in
monthly installments
- Private Student Loans - -loans made by banks, credit unions, or other
organizations with terms and conditions set by the lender, including higher
or variable interest rates
- Federal Student Loans - -loans made by the government with terms and
conditions set by law; often have a lower fixed interest rate
- Subsidized Loans - -federal student loans that are based on a student's
financial need and don't accrue interest for a set period of time
- Unsubsidized Loans - -federal student loans that aren't based on a
student's financial need and start accruing interest immediately
