Precision Exam Personal Finance (A+ Graded)

Annual Fee correct answers Charged by credit card companies for the privilege of using their card Annual Percentage Rate(APR) correct answers The interest rate that shows what a borrower is actually paying with all the costs of financing factored in Annual Percentage Yield(APY) correct answers The interest rate that shows what an account will earn annually with compounding factored in. Asset correct answers Something owned Beneficiary correct answers A person who receives payment from a life insurance provider when the policyholder dies Budget correct answers List of planned expenses and revenues Budgeting correct answers The process of forecasting future expenses and income Cash advance correct answers The ability to use her credit card to withdraw cash from a bank or ATM (rather than just purchasing a good or service) Cash inflow correct answers Money received Cash outflow correct answers Money spent Cashiers check correct answers A type of check that is written to a specific PE but charged against a bank instead of an individual account Certificate of deposit(CD) correct answers A contract between an individual in a financial institution that specifies the time that the individual will leave a certain amount of money deposited in the account and the interest rate earned Check correct answers A written order from an individual to a bank that instructs the bank to pay money to another party Checking account correct answers An account into which a person deposits money and from which a person withdraws money by writing checks or using a debit card Compound interest correct answers Interest earned an interest added to an account Cosigner correct answers A person, other than the principal borrower, who signs for a loan and assume is equal liability for it