Civics and Economics Chapter 20: Personal Finance and Economics – Flashcards
Unlock all answers in this set
Unlock answersquestion
consumer
answer
someone who buys a good or service
question
disposable income
answer
money income left after all taxes on it have been paid
question
discretionary income
answer
money income left after necessities have been bought and paid for
question
consumerism
answer
a movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers
question
comparison shopping
answer
buying strategy to get the best buy for the money
question
warranty
answer
the promise made by a manufacturer or a seller to repair or replace a product within a certain time period if it is faulty
question
budget
answer
a plan for making and spending money
question
income
answer
money received from labor, business, or property
question
expense
answer
money spent on goods and services
question
credit
answer
money borrowed to pay for a good or service
question
annual percentage rate (APR)
answer
annual cost of credit expressed as a percentage of the amount borrowed
question
collateral
answer
property or valuable item serving as security for a loan
question
bankruptcy
answer
inability to pay debts
question
save
answer
to set aside income for a period of time so that it can be used later
question
interest
answer
the payment people receive when they lend money or allow someone else to use their money
question
principal
answer
amount of money that was initially deposited in a bank account
question
return
answer
profit earned through investing
question
stock
answer
ownership share of a corporation
question
dividend
answer
payment of a portion of a companys earnings
question
bond
answer
contract to repay borrowed money with interest at a specific time in the future
question
mutual fund
answer
pool of money from many people who are invested in a selection of individual stocks and bonds chosen by financial experts
question
impulse buying
answer
purchasing an item on the spot because of an emotional rather than planned decision
