1. when you pay a bill in full, you are
a. paying it off
b. defaulting
c. maximizing profit
d. zeroing

2. apr stands for
a. annual partial
b. amortized percentage rate
c. annual percentage rate
d. amortized partial rate

3. when calculating interest accrued, you should
a. multiply the principal by apr
b. multiply the principal by the apr and number of months
c. multiply the principal by the apr and number of months, then divide by the total number of the months in the year
d. multiply the principal by the apr and the number of months in the year, then divide by the

4. are used to take money directly from your account
a. charge cards
b. debit cards
c. credit cards
d. cash cards

5. a pack of gum would be considered a
a. luxury item
b. small ticket item
c. unaccountable expense
d. necessity

6. interest rates on mortgages are lower because the home is
a. used
b. secured
c. collateral
d. stable

Answer and Explanation

1.When you pay a bill in full, you are

Paying it off - When you pay off a bill it means that you give money to in return for goods or services rendered. That is giving cash for exchange of goods or services.

2.APR stands for

Annual percentage rate- This is the annualized cost of credit expressed as percentage.The calculation of APR considers certain fees to reflect the cost of credit in addition to interest.

3.when calculating interest accrued, you should

multiply the principal by the APR and number of months, then divide by the total number of the months in the year.

4. --- are used to take money directly from your account

Debit cards- A debit card is a payment card that is used to make payment instead of using cash to make payments when purchasing items.

5. A pack of gum would be considered a

small ticket item -a small ticket item is a retail good that has low selling price.

6.Interest rates on mortgages are lower because the home is

Secured- Secured loan interest lowers the risk for the leader and allows the lender to charge lower interest. In this transaction in which a security interest is granted is called a secured transaction.