# Wise Interest,and Cost Of Money: Question Preview (ID: 13889)

### Below is a preview of the questions contained within the game titled WISE INTEREST,AND COST OF MONEY: Wise Test .To play games using this data set, follow the directions below. Good luck and have fun. Enjoy! [print these questions]

**Play games to reveal the correct answers. Click here to play a game and get the answers.**

**The Rule of 72 is an easy way to:**

a) Approximate your savings balance each year

b) Calculate how fast your savings will double in value at given interest rates

c) Calculate how much tax you will owe on the interest earned

d) Calculate the length of time it takes to pay off a credit balance

**The cost to use someone else's money for a period of time is called the:**

a) Interest rate expressed as a percentage

b) Opportunity cost

c) Minimum payment

d) Inflation rate

**If a person has $1,000 in a savings account and earns $20 a year in interest on that account, the rate of return on the money is close to**

a) 5%.

b) 20%

c) 10%

d) 2%

**The information that a lender must disclose to consumers applying for a cash loan is**

a) The formula for compounded interest

b) The tax obligations

c) Full dollar amount being paid back on the loan over its life

d) The annual percentage rate (APR), and/or the finance charge

**Money received today is worth more than the same amount of money received sometime in the future is:**

a) The Rule of 72

b) Investing

c) Not true

d) The time value of money

**What should a person do when he believes he is being charged too high a rate of interest for a loan by a lending institution?**

a) Accept the loan but pay it off early.

b) Notify the local Better Business Bureau.

c) Notify the lending institution about state usury laws.

d) Ask the lending institution to lower its rates.

**The amount a lender charges to borrow money is called the:**

a) Principal

b) Finance charge

c) Minimum payment

d) Opportunity cost

**Interest earned on interest is known as:**

a) Simple interest

b) Variable interest

c) Compounded interest

d) True interest

**Lamar believes that interest rates are going to fall in the near future and remain low for a considerable period of time. She should invest in:**

a) Nothing, she should put her money under her mattress

b) A short-term, fixed rate certificate of deposit

c) A long-term, fixed rate certificate of deposit

d) A variable rate certificate of deposit

**Which type of financial institution usually pays the highest rate of interest on savings account balances?**

a) Savings and loan associations

b) Investment firm money market accounts

c) Credit unions

d) Commercial banks

**To determine the time value of depositing $100 in a savings account, a person needs to know the interest rate and**

a) To determine the time value of depositing $100 in a savings account, a person needs to know the inte

b) whether the bank offers overdraft protection.

c) whether the account is FDIC protected.

d) the rate of inflation.

Play Games with the Questions above at ReviewGameZone.com

To play games using the questions from the data set above, visit ReviewGameZone.com and enter game ID number: 13889 in the upper right hand corner at ReviewGameZone.com or simply click on the link above this text.

To play games using the questions from the data set above, visit ReviewGameZone.com and enter game ID number: 13889 in the upper right hand corner at ReviewGameZone.com or simply click on the link above this text.

TEACHERS / EDUCATORS

Log In | Sign Up / Register

Log In | Sign Up / Register