Question

Match the terms to their correct definition. 1. average daily balance amount owed on the account after payments and credits have been subtracted from the previous balance 2. carrying charges percentage charged for a unit of time 3. closing costs amount of money received when money is borrowed 4. credit excess amount paid over the cash price 5. credit card an arrangement of quantities whose positions are based upon the natural numbers 6. discount loan based on the belief a person will pay his obligations 7. down payment a loan based on the value of the real estate it is used to purchase 8. finance charge total amount owed on the account at the end of the previous billing cycle 9. fixed rate a check which can not be covered by funds in the account 10. interest fees associated with taking out a mortgage 11. interest rates 7 initial cash payment 12. mortgage interest rate that does not change 13. overdraft loan in which the interest is paid in advance from the sum advanced 14. previous balance fee charged for delaying payment 15. proceeds interest rate tied to an index that may change 16. sequence price paid to use someone else's money to make purchases 17. unpaid balance average amount owed for each day of the billing period 18. variable rate 5 financial instrument that allows you to take out a loan from the credit card company to make purchases

Answer 1

1. average daily balance -- average amount owed for each day of the billing period

2. carrying charges -- excess amount paid over the cash price

3. closing costs -- fees associated with taking out a mortgage

4. credit -- based on the belief someone will pay his obligations

5. credit card -- financial instrument that allows you to take out a loan from the credit card company to make purchases.

6. discount loan -- loan in which the interest is paid in advance from the sum advanced

7. down payment -- initial cash payment

8. finance charge -- price paid to use someone elses money to make purchases

9. fixed rate -- interest rate that does not change

10. interest -- fee charged for delaying payment

11. interest rates -- percentage charged for a unit of time

12. mortgage -- a loan based on the value of real estate it is used to purchase

13. overdraft -- a check that cannot be covered by funds in the account

14. previous balance -- total amount owed on the account at the end of the previous billing cycle

15. proceeds -- amount of money received when money is borrowed

16. sequence -- arrangement of quantities whose positions are based upon the natural numbers

17. unpaid balance -- amount owed on the account after payments and credits have been subtracted from the previous balance

18. variable rate -- interest rate tied to an index that may change

Explanation:

Answer 2

Explanation:

1. average daily balance -- average amount owed for each day of the billing period

2. carrying charges -- excess amount paid over the cash price

3. closing costs -- fees associated with taking out a mortgage

4. credit -- based on the belief someone will pay his obligations

5. credit card -- financial instrument that allows you to take out a loan from the credit card company to make purchases.

6. discount loan -- loan in which the interest is paid in advance from the sum advanced

7. down payment -- initial cash payment

8. finance charge -- price paid to use someone elses money to make purchases

9. fixed rate -- interest rate that does not change

10. interest -- fee charged for delaying payment

11. interest rates -- percentage charged for a unit of time

12. mortgage -- a loan based on the value of real estate it is used to purchase

13. overdraft -- a check that cannot be covered by funds in the account

14. previous balance -- total amount owed on the account at the end of the previous billing cycle

15. proceeds -- amount of money received when money is borrowed

16. sequence -- arrangement of quantities whose positions are based upon the natural numbers

17. unpaid balance -- amount owed on the account after payments and credits have been subtracted from the previous balance

18. variable rate -- interest rate tied to an index that may change