Word Power

Learning these personal finance terms will enrich your vocabulary – and maybe even your wallet

1. funemployment – A: employees have the chance to buy shares in a company. B: enjoyment of free time resulting from joblessness. C: appreciation for one’s work.

2. equity – A: spending everything one earns. B: value of a property minus what is owed for it. C: donation matching.

3. smishing – A: text-message scamming. B: not tracking expenses. C: failing to pay alimony. 4. act of God – A: sudden windfall. B: tax exemption for religious organisations. C: uncontrollable natural event.

5. asset – A: divorce agreement. B: valuable item that is owned. C: joint venture.

6. inflation – A: exaggerating one’s income. B: overspending.

C: general increase in prices.

7. opportunity cost – A: benefit missed by choosing one alternative over another. B: job-application fee. C: bargain price.

8. balloon loan – A: loan with an abnormally high interest rate. B: no collateral. C: a large sum due at the end.

9. substitute good – A: bartered object. B: item offered as a bribe. C: product or service that could replace another one.

10. interest – A: The fee paid for using other people’s money. B: savings that can’t be withdrawn until retirement. C: any money an individual receives.

11. intestate – A: of moving expenses. B: without a last will. C: cost that is not part of producing a good or service.

12. creditworthiness – A: a measure of one’s ability to repay a loan. B: earning less than expected. C: selling something borrowed in the hope its price will fall before it must be replaced.

13. liquid – A: spent on alcohol. B: easily converted into cash. C: financially risky.