PERSONAL FINANCE ECONOMICS QUESTIONS AND GRADED
ANSWERS, 100% GUARANTEE
bond - This is a contract to repay borrowed money, often issued by a company. This
issues financial security for a debt.
compound interest - This is a method of calculating interest in which the interest is added
to the principal each period so that the principal continues to grow throughout the life of the loan
or investment. The formula is A = C * (1 + r/100)n where A is the future value, C is the
principal, r is the interest rate per period, and n is the number of periods.
current yield - The annual interest rate paid by a bond. It does not reflect the interest rate
paid over the life of the bond.
disability insurance - A type of insurance paid to an individual if he/she is injured and is
unable to work for a specified length of time.
earnings - This is a payment usually of money for labor or services usually according to
contract and on an hourly basis.
excise tax - This is a tax on production, transportation, sale or consumption of a certain
good or service.
incentive - Any factor, usually financial, to influence once choice over another by an
individual or business.
income tax - This is a tax levied on net personal or business income.
inflation - a rise in the general level of prices
ANSWERS, 100% GUARANTEE
bond - This is a contract to repay borrowed money, often issued by a company. This
issues financial security for a debt.
compound interest - This is a method of calculating interest in which the interest is added
to the principal each period so that the principal continues to grow throughout the life of the loan
or investment. The formula is A = C * (1 + r/100)n where A is the future value, C is the
principal, r is the interest rate per period, and n is the number of periods.
current yield - The annual interest rate paid by a bond. It does not reflect the interest rate
paid over the life of the bond.
disability insurance - A type of insurance paid to an individual if he/she is injured and is
unable to work for a specified length of time.
earnings - This is a payment usually of money for labor or services usually according to
contract and on an hourly basis.
excise tax - This is a tax on production, transportation, sale or consumption of a certain
good or service.
incentive - Any factor, usually financial, to influence once choice over another by an
individual or business.
income tax - This is a tax levied on net personal or business income.
inflation - a rise in the general level of prices
