Apex Final 2024/2025 Questions and Answers with complete solution

80/20 Mortgage - The first and main mortgage is for 80 percent of the home's price. The piggyback loan is for 20 percent of the home's price, minus the down payment, if any. Capacity - An estimate of a person's ability to pay off debts based on the money that person has available to meet financial obligations. Capital Gain - The amount by which a selling price exceeds a purchasing price. Capital Loss - The amount by which a purchasing price exceeds a selling price. Car Insurance Premium - The amount paid monthly or in some other cycle for an insurance policy. Collateral - An estimate of a person's ability to pay off debts based on how much cash and assets he or she has. These assets are used as a pledge for a loan. Collision Damage Wavier - A type of optional collision coverage when renting a vehicle. It pays for damages to the rental car in the case of a collision with other cars, people, or objects. Credit - Deduction - Expenses that can be used to lower taxable income so that less tax is owed. Dependent - People who rely on another person for financial support. Deposit - Money held at a financial institution by an account holder for safekeeping. Dividends - Payments from a company to its shareholders.Dow Jones - An indicator of stock market prices. It is the average of 30 selected industrial stocks. Exemption - Amounts subtracted from a taxpayer's gross income, based on the number of dependents claimed, which reduce taxable income. Financial Literacy - The set of skills and knowledge needed to make informed decisions about money matters. Interest - The fee paid for using other people's money — also called finance charge. Introductory APR - A promotional interest rate for a limited time for new credit card applicants, typically much lower than the standard APR