Question 1

What is the concept of spending more money than you earn, resulting in debt called?

Accepted Answer

Overspending

Answer

Savings

Answer

Investing

Answer

Budgeting

Question 2

What is the term used to describe the process of setting aside money for future use?

Accepted Answer

Saving

Answer

Spending

Answer

Investing

Answer

Borrowing

Question 3

What is the fee charged by a lender for the use of borrowed money called?

Accepted Answer

Interest

Answer

Down Payment

Answer

Principal

Answer

Credit Score

Question 4

What is the term for a financial institution that manages money deposited by customers and provides loans?

Accepted Answer

Bank

Answer

Supermarket

Answer

Hospital

Answer

Library

Question 5

What are assets that can easily be converted into cash called?

Accepted Answer

Liquid assets

Answer

Real assets

Answer

Illiquid assets

Answer

Intangible assets

Question 6

What is the process of spreading your investments across different types of assets to reduce risk called?

Accepted Answer

Diversification

Answer

Specialization

Answer

Consolidation

Answer

Maximization

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