Question

3 multiple choice 1 point
when buying a home, the initial amount borrowed is known as
○ interest
○ lease
○ principal
○ mortgage

4 multiple choice 1 point
what does opportunity cost mean?
○ the cost of making one decision over another
○ the cost of buying something expensive
○ the cost for the opportunity to buy anything you want
○ the opportunity that will cost you loads of money

Explanation:

For question 3: The initial amount borrowed in a home loan is defined as the principal. Interest is the extra amount paid to borrow, a lease is a rental agreement, and a mortgage is the loan itself, not the initial borrowed sum.
For question 4: Opportunity cost refers to the value of the next best alternative that is forgone when making a choice, which matches the description of the cost of choosing one option over another.

Answer:

1. principal
2. the cost of making one decision over another