Question 1

the total amount of income from wages before any payroll deductions

Accepted Answer

Gross Income

Question 2

the amount of money left after subtracting the deductions from your gross income

Accepted Answer

Net Income

Question 3

A sum paid or charged for the use of money or for borrowing money

Accepted Answer

interest

Question 4

the process of accumulating interest on an investment over time to earn more interest

Accepted Answer

Compounding

Question 5

A plan for the use of your money

Accepted Answer

budget

Question 6

Costs that do not change from month to month

Accepted Answer

fixed expenses

Question 7

expenses that change from month to month

Accepted Answer

variable expenses

Question 8

A check written for more money than your account contains

Accepted Answer

overdraft

Question 9

allows you to use a computer to move money between accounts

Accepted Answer

Electronic Funds Transfer (EFT)

Question 10

the ability to take out your money on short notice

Accepted Answer

Liquidity

Question 11

The maximum dollar amount that can be borrowed

Accepted Answer

credit limit

Question 12

A security pledged for the repayment of a loan.

Accepted Answer

collateral

Question 13

cost of credit

Accepted Answer

Annual Percentage Rate (APR)

Question 14

a person's reputation for paying bills on time

Accepted Answer

credit rating