Banzai Questions with correct Answers 2023

Banzai Questions with correct Answers 2023 amortize pay off a debt in installments APR Annual percentage rate; the annual rate of interest that is charged for using credit Claim A request submitted to your insurance provider to help pay for covered expenses. Collision Coverage A type of auto insurance that protects against damage costs accrued by the policyholder. Comprehensive Coverage protection against damages to your car from causes other than collision or rolling over Credit Report a report on a person's creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and savings balances Credit Score a number assigned to a person that indicates to lenders their capacity to repay a loan. Debt-to-income Ratio A calculation that divides the debt you have by the amount of money you make to produce a percentage that helps lenders decide your ability to pay back a loan. Deductible Amount you must pay before you begin receiving any benefits from your insurance company Double Entry Accounting A budgeting method where you record your earnings twice: once in your account and once in your budget. Down Payment An amount paid before a large purchase to reduce the loan amount and prove your interest and ability to make such a purchase. Exemption A deduction that legally allows you to lower the amount of taxable income you made in a year. Expenses Anything that you spend money on, whether it's a necessity or a luxury. 401(k) An employer-sponsored savings and investment plan that allows you to contribute some of your earnings to keep for retirement. Contributions are tax-deferred and your employer might choose to match contributions as a benefit of employment. Gross Income the total amount of income from wages before any taxes or payroll deductions Hard Inquiry occurs when someone checks your credit history to make a lending decision, it affects your credit score Identity Theft Illegally using someone else's identity for personal or financial gain. Insurance A service that provides protection against the unpredictable; like car accidents or broken arms. Lease A contract that lets you use someone else's property for a specified rate and length of time. Liability Coverage Liability coverage protects you from being sued if you're at fault for personal or property damage. Minimum Payment The smallest required payment that a credit card holder can pay on a monthly bill and still remain in good standing with the lender. Net Income Your total income after all taxes and withholdings are paid. Net Worth The amount that you own in assets minus the amount you owe in liabilities. Personal Injury Protection An add-on insurance option that protects against medical costs and lost wages in the case of a car accident. Policy A document detailing the type and amount of coverage your insurance offers. Principal The total amount of unpaid money on a loan excluding any interest charges. Private Mortage Insurance A policy offered by a private third party that protects your lender against mortgage default. Rate of Return How much an investment gains or loses over a specific amount of time.