Civics and Economics Chapter 20: Personal Finance and Economics

question

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

Get instant access to
all materials

Become a Member